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: eBook 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 $ 9,600 4,800 3,800 600 2,800 80 960 50 480 $23,170 len Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 7,350 59,625 - 86 $ 99,250 Oak Glen $ 10,985 82,350 122 $147,005 Mimosa $ 12,170 44,900 66 $77,770 Birch Glen $ 9,000 89,925 174 $ 61,800 Total $ 39,505 276,800 448 $385, 825 Required: 1. Based on annual revenue, what amount of the central office costs are allocated to each resort? 2. 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? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) Pine Valley Oak Glen Mimosa Birch Glen Total Allocated cost 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 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.) Pine Valley Oak Glen Mimosa Birch Glen Total Allocation Base Revenue Square feet Number of rooms Assets Total cost allocated
