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.)	$ 12,100
Administrative and executive salaries	5,700
Interest on resort purchase	4,700
Advertising	600
Housekeeping	3,700
Depreciation on reservations computer	80
Room maintenance	1,210
Carpet-cleaning contract	50
Contract to repaint rooms	570
	$ 28,710

	Pine Valley	Oak Glen	Mimosa	Birch Glen	Total
Revenue (000s)	$ 9,150	$ 13,675	$ 15,150	$ 11,205	$ 49,180
Square feet	64,290	88,765	48,415	96,950	298,420
Rooms	86	122	66	174	448
Assets (000s)	$ 107,015	$ 158,465	$ 83,855	$ 66,630	$ 415,965

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?

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

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

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.)

Allocation Base	Pine Valley		Oak Glen		Mimosa		Birch Glen		Total
Revenue
Square feet
Number of rooms
Assets
Total cost allocated