Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort?
\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|l|}{ Front office personnel } \\ \hline Administrative and executive salaries & \multicolumn{4}{|c|}{4,000} \\ \hline Interest on resort purchase & & \multicolumn{3}{|c|}{3,000} \\ \hline Advertising & & \multicolumn{3}{|c|}{600} \\ \hline Housekeeping & & \multicolumn{3}{|c|}{2,000} \\ \hline Depreciation on reservations computer & & \multicolumn{3}{|c|}{80} \\ \hline Room maintenance & & \multicolumn{3}{|c|}{800} \\ \hline Carpet-cleaning contract & & \multicolumn{3}{|c|}{50} \\ \hline Contract to repaint rooms & & \multicolumn{3}{|c|}{400} \\ \hline & & $18,930 & & \\ \hline Pine Valley & Oak Glen & Mimosa & Birch Glen & Total \\ \hline Revenue (000s) & $7,995 & $8,857 & $6,550 & $28,752 \\ \hline Square feet & 76,599 & 41,774 & 83,664 & 257,512 \\ \hline Rooms & 122 & 66 & 174 & 448 \\ \hline Assets (000s) & $136,745 & $72,355 & $57,499 & $358,944 \\ \hline \end{tabular} Using the cost pool system in requirement 2 , how much of the central office costs would be allocated to each resort? calculations. Enter your answers in thousands rounded to the nearest dollar.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started