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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 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.) $ 8,400
Administrative and executive salaries 4,200
Interest on resort purchase 3,200
Advertising 600
Housekeeping 2,200
Depreciation on reservations computer 80
Room maintenance 840
Carpet-cleaning contract 50
Contract to repaint rooms 420
$ 19,990
Pine Valley Oak Glen Mimosa Birch Glen Total
Revenue (000s) $ 5,750 $ 8,595 $ 9,520 $ 7,040 $ 30,905
Square feet 56,510 78,035 42,565 85,260 262,370
Rooms 86 122 66 174 448
Assets (000s) $ 94,070 $ 139,310 $ 73,725 $ 58,595 $ 365,700

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 $0

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?

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

3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort?

Allocation Base Pine Valley Oak Glen Mimosa Birch Glen Total
Revenue $0
Square feet 0
Number of rooms 0
Assets 0
Total cost allocated $0 $0 $0 $0 $0

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