Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Woodland Hotels, Inc., operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort:

Woodland Hotels, Inc., operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows:

Front office personnel (desk, clerks, etc.) $ 8,200
Administrative and executive salaries 4,200
Interest on resort purchase 3,200
Advertising 700
Housekeeping 2,200
Depreciation on reservations computer 180
Room maintenance 820
Carpet-cleaning contract 54
Contract to repaint rooms 420

Costs to be allocated $ 19,974

Pine Valley Oak Glen Mimosa Birch Glen Total
Revenue (000s) $ 5,550 $ 8,195 $ 8,877 $ 6,950 $ 29,572
Square feet 55,675 76,799 41,974 83,864 258,312
Rooms 88 124 68 176 456
Assets (000s) $ 92,545 $ 136,945 $ 72,555 $ 57,699 $ 359,744

Required:
1.

Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Lawrence Tomassini

5th Edition

0077282078, 9780077282073

More Books

Students also viewed these Accounting questions

Question

Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago