Woodland Hotels Inc. operates four resorts in the heavily woodedareas of northern California. The resorts are named after thepredominant trees at the resort: Pine Valley, Oak Glen, Mimosa, andBirch Glen. Woodland allocates its central office costs to each ofthe four resorts according to the annual revenue the resortgenerates.

Front office personnel	10900
Administrative and executive salaries	5300
Interest on resort purchase	4300
Advertising	600
Housekeeping	3,300
Depreciation on reservations computer	80
Room maintenance	1,090
Carpet-cleaning contract	50
Contract to repaint rooms	530
	$26,150

	Pine Valley	Oak Glen	Mimosa	Birch Glen	Total
Revenue (000s)	8350	12480	13825	10,225	44,880
Square feet	62215	85890	46835	93,820	288,760
Rooms	86	122	66	174	448
Assets (000s)	103565	153335	81120	$ 64,480	402,500

Required: 1. Based on annual revenue, what amount of the centraloffice costs are allocated to each resort?

2. Suppose that the current methods were replaced with a systemof four separate cost pools with costs collected in the four poolsallocated on the basis of revenues, assets invested in each resort,square footage, and number of rooms, respectively. Which costsshould be collected in each of the four pools?

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