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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.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms $10,300 5,100 4,100 600 3,100 80 1,030 50 510 $24,870 Pine Valley $ 7,950 61,180 86 $101,840 Revenue (000s) Square feet Rooms Assets (000s) Oak Glen $ 11,880 84,455 122 $ 150,770 Mimosa $ 13,160 46,055 Birch Glen $ 9,730 92,220 174 $ 63,380 Total $ 42,720 283,910 448 $395,765 66 $ 79,775 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools? (Enter your answers in thousands of dollars.) Allocation Base Total Revenue Square feet Number of rooms Assets Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Allocation Base Pine Valley Oak Glen Mimosa Birch Glen Total Revenue $ O Square feet Number of rooms 0 0 0 Assets Total cost allocated $ 0 $ 0 $ 0 0
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