Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 (000s omitted) were as follows: $ 9,000 Front office personnel (desk, clerks, etc.) Administrative and executive salaries 4, see 3, 5ee 600 Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance 2,5e0 80 900 Carpet-cleaning contract Contract to repaint rooms 50 450 $ 21,580 Pine Valley Oak Glen $ 6,358 58, 065 Mimosa Birch Glen $ 9,498 8e, 190 $ 10,515 43,720 66 $ 7,775 87,560 174 Total $ 34,130 269,535 448 Revenue (000s) Square feet Rooms 86 122 Assets (000s) $ 96,660 $ 143,160 $ 75,730 $ 60,175 $ 375,725 Requlred: 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.

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 (000s omitted) were as follows: $ 9,000 Front office personnel (desk, clerks, etc.) Administrative and executive salaries 4, see 3, 5ee 600 Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance 2,5e0 80 900 Carpet-cleaning contract Contract to repaint rooms 50 450 $ 21,580 Pine Valley Oak Glen $ 6,358 58, 065 Mimosa Birch Glen $ 9,498 8e, 190 $ 10,515 43,720 66 $ 7,775 87,560 174 Total $ 34,130 269,535 448 Revenue (000s) Square feet Rooms 86 122 Assets (000s) $ 96,660 $ 143,160 $ 75,730 $ 60,175 $ 375,725 Requlred: 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.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...
See similar textbooks
icon
Related questions
Question
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 (000s omitted) were as follows: Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance $ 9,800 4,500 3,500 600 2,500 80 900 Carpet-cleaning contract Contract to repaint rooms 50 450 $ 21,580 Pine Valley Oak Glen $ 6,350 58,065 Mimosa $ 18,515 43,720 66 Total $ 34,130 269,535 Birch Glen Revenue (00es) Square feet $ 9,490 8е,198 $ 7,775 87,560 174 Rooms 86 122 448 Assets (000s) $ 96,660 $ 143,160 $ 75,730 $ 60,175 $ 375,725 Requlred: 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. Required 1 Required 2 Required 3 Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your ansvers in thousands rounded to the nearest dollar.) Pine Valley Oak Glen Mimosa Birch Glen Total Allocated cost Required 1 Required 2 >
Transcribed Image Text: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 (000s omitted) were as follows: Front office personnel (desk, clerks, etc.) Administrative and executive salaries Interest on resort purchase Advertising Housekeeping Depreciation on reservations computer Room maintenance $ 9,800 4,500 3,500 600 2,500 80 900 Carpet-cleaning contract Contract to repaint rooms 50 450 $ 21,580 Pine Valley Oak Glen $ 6,350 58,065 Mimosa $ 18,515 43,720 66 Total $ 34,130 269,535 Birch Glen Revenue (00es) Square feet $ 9,490 8е,198 $ 7,775 87,560 174 Rooms 86 122 448 Assets (000s) $ 96,660 $ 143,160 $ 75,730 $ 60,175 $ 375,725 Requlred: 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. Required 1 Required 2 Required 3 Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediate calculations. Enter your ansvers in thousands rounded to the nearest dollar.) Pine Valley Oak Glen Mimosa Birch Glen Total Allocated cost Required 1 Required 2 >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SEE MORE TEXTBOOKS