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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:

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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: 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 $11,800 5,600 4,600 600 3,600 80 1,180 50 560 $28,070 Pine Valley $ 8,950 63,770 86 $106,155 Revenue (2005) Square feet Rooms Assets (2008) Oak Glen $ 13,375 88,050 122 $157,185 Birch Glen $ 10,955 96,180 Mimosa $14,815 48,015 66 $83,165 Total $ 48,095 296,015 448 $412,685 174 $ 66,100 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? Print Complete this question by entering your answers in the tabs below. References 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 > Complete this question by entering your answers in the tabs below. ces 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.) Total Allocation Base Revenue Square feet Number of rooms Assets Required 1 Required 3 > 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. ences 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 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 $ 0 $ 0 o $ $ 0 ( Required 2 Required 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 $11,800 5,600 4,600 600 3,600 80 1,180 50 560 $28,070 Pine Valley $ 8,950 63,770 86 $106,155 Revenue (2005) Square feet Rooms Assets (2008) Oak Glen $ 13,375 88,050 122 $157,185 Birch Glen $ 10,955 96,180 Mimosa $14,815 48,015 66 $83,165 Total $ 48,095 296,015 448 $412,685 174 $ 66,100 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? Print Complete this question by entering your answers in the tabs below. References 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 > Complete this question by entering your answers in the tabs below. ces 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.) Total Allocation Base Revenue Square feet Number of rooms Assets Required 1 Required 3 > 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. ences 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 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 $ 0 $ 0 o $ $ 0 ( Required 2 Required

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