Question
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 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.) $ 8,000 Administrative and executive salaries 4,000 Interest on resort purchase 3,000 Advertising 600 Housekeeping 2,000 Depreciation on reservations computer 80 Room maintenance 800 Carpet-cleaning contract 50 Contract to repaint rooms 400 $ 18,930 Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (000s) $ 5,350 $ 7,995 $ 8,857 $ 6,550 $ 28,752 Square feet 55,475 76,599 41,774 83,664 257,512 Rooms 86 122 66 174 448 Assets (000s) $ 92,345 $ 136,745 $ 72,355 $ 57,499 $ 358,944
Required: 1. Based on annual revenue, what amount of the central office costs are 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
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.)
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