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Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern Callfornia. 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 Callfornia. 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, alerks, ete. Adninietrative and exeautive salaries Interest on resort parchase dvertising lousekoeping Depreciation on reservations computer Room maintenance 9,400 4,700 3.700 600 Skpped ebook 2,700 80 940 50 Carpet-aleaning conteact Contract to repaint fooms $22, 640 Pine Valley oak Glen MimonCles Total 7.150 10.68S 11.3s750 aR,420 9,10581,630 44,525 89,155 274,415 Birch Revenue (0008) Square feet 448 Ansets (000s)90,305 145 725 $77,120 S61,275 9382,505 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 colected in the four pools ailocated on the basis of revenues, assets inversted 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. Skipped Required 1 Required 2 Required 3 esook t Suppose that the current methods were pools allocated on the basis assets i Which costs should be cillected in each of the four pools? (Enter your answers in thousands of dollars.) replaced with a system of four separate cost pools with costs collected in the four of revenues, assets invested in each resort, square footage, and number of rooms, respectively ota Revenue Square feet Number of rooms Assets Complete this question by entering your answers in the tabs below Required 1 Required 2 Requed3 Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round interm calculations. Enter your answers in thousands rounded to the nearest dollar.) Pine Valley Mimosa Birch Glen Square fee Number of rooms Assets Total cost allocated Required 2

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