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CoursHeroTranscribedText: 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 ofce costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (0005 omitted) were as follows: Front office personnel (desk, clerks, etc.) $12,700 Administrative and executive salaries 5,900 Interest on resort purchase 4,900 Advertising 600 Housekeeping 3,900 Depreciation on reservations computer 80 Room maintenance 1,270 Carpetcleaning contract 50 Contract to repaint rooms 590 $29,990 I Fine Birch Valley Oak Glen Mimosa Glen Total Revenue (0005) $ 9,550 $ 14,270 $15,810 $11,690 $ 51,320 Square feet 65,325 90,205 49,195 98,545 303,270 Rooms 86 122 66 174 448 Assets (0005) $108,745 $161,030 $85,205 $67,725 $422,705 I Required: 1. Based on annual revenue, what amount of the central ofce 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

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