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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: 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 $(000$s omitted$)$ were as follows:

Front office personnel $($desk$,$ clerks, etc.$)$ $ $13,000$

Administrative and executive salaries $6,000$

Interest on resort purchase $5,000$

Advertising $600$

Housekeeping $4,000$

Depreciation on reservations computer $80$

Room maintenance $1,300$

Carpet$-$cleaning contract $50$

Contract to repaint rooms $600$

$ $30,630$

Pine Valley Oak Glen Mimosa Birch Glen Total

Revenue $(000$s$)$ $ $9,750$ $ $14,570$ $ $16,140$ $ $11,935$ $ $52,395$

Square feet $65,84590,92049,59599,310305,670$

Rooms $8612266174448$

Assets $(000$s$)$ $ $109,605$ $ $162,315$ $ $85,900$ $ $68,255$ $ $426,075$

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?Woodland Hotels Incorporated operates four resorts in the heavlly wooded areas of northern Calffornla. 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 $(000$s 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, respectlvely. Which costs

should be collected in each of the four pools?

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.

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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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