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Chapter 18 Assignment i Saved HE Woodland Hotels Inc. 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: 0.31 points eBook Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance Carpet-cleaning contract Contract to repaint rooms $12,400 5,800 4,800 600 3,800 80 1,240 References 580 $29,350 Birch Glen Revenue (000s) Square feet Rooms Assets (2005) Pine Valley $ 9,350 64,805 86 $107,880 Oak Glen $ 13,975 89,485 122 $159,750 Mimosa $ 15,480 $ 11,450 48,790 97,715 66174 $ 84,510 $ 67,155 97,715 Total $ 50,255 300,795 448 $419,295 368; 255 19,768 $159, 132 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? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Revenue Square feet Number of rooms $ $ $ $ Total 230,000 50 5,620 4,800 Assets Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 Revenue Square feet Number of rooms $ $ $ $ Total 230,000 50 5,620 4,800 Assets Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) Pine Valley Oak Glen Mimosa Birch Glen Total Allocation Base Revenue Square feet Number of rooms L Assets Total cost allocated L 0 $ 0 $ 0 $ 0 $ 0 $ 0