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Woodland Hotels Incorporated operates four resorts in the heavly wooded areas of northern Callfornla. The resorts are named after the predominant trees at the resort:
Woodland Hotels Incorporated operates four resorts in the heavly wooded areas of northern Callfornla. 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 omitted
were as follows:
Required:
Based on annual revenue, what amount of the central office costs are allocated to each resort?
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?
Using the cost pool system in requlrement how much of the central office costs would be allocated to each resort?
Complete this question by entering your answers in the tabs below.
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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