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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

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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 : 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.) $ 12,700 Administrative and executive salaries 5,900 Interest on resort purchase 4,900 Advertising 600 Housekeeping 3,900 Depreciation on reservations computer Room maintenance 1,270 Carpet-cleaning contract 50 Contract to repaint rooms 590 $ 29,990 80 Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (2005) $ 9,550 $ 14,270 $ 15,819 $ 11,690 551,320 Square feet 65,325 90,205 49,195 98,545 303,270 Rooms B6 122 66 174 448 Assets (2005) $ 108,745 $ 161,030 $ 85, 205 $ 67,725 $ 422,705 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 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 tuled Required 2 > 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 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 ystem 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 Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermec calculations. Enter your answers in thousands rounded to the nearest dollar.) Allocation Base Pine Valley Oak Glen Mimosa Birch Glen Total Revenue Square feet Number of rooms Assets Total cost allocated

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