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Woodland Hotels Incorporated operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort:
Woodland Hotels Incorporated 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 ofthe four resorts according to the annual revenue the resort generates. For the current year, the central ofce costs (0005 omitted) were as follows: Front office personnel (desk, clerks, etc.) $ 10,300 Administrative and executive salaries 5,100 Interest on resort purchase 4,100 Advertising 600 Housekeeping 3,100 Depreciation on reservations computer 80 Room maintenance 1,030 Carpetcleaning contract 50 Contract to repaint rooms 510 $ 24,870 Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (0005) $ 7,950 $ 11,880 $ 13,160 $ 9,730 $ 42,720 Square feet 61,180 84,455 46,055 92,220 283,910 Rooms 86 122 66 174 448 Assets (0005) $ 101,840 $ 150,770 $ 79,775 $ 63,380 $ 395,765 Requhed: 1. Based on annual revenue, what amount of the central ofce 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 ofthe four pools? 3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? 9 Answer is not complete. 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 ofce costs are allocated to each resort? (Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest dollar.) Allocated cost $ 4,6289 $ 6,9160 :5 7,6619 $ 5,664Q $ 24,869 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.) Revenue Square feet Number of rooms _ 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.) Revenue Square feet Total cost allocated $ 0 $
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