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 Carpet-cleaning contract Contract to repaint rooms Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 6,550 58,585 Oak Glen $ 9,790 80,910 122 86 $ 97,525 $ 144,440 $ 9,200 4,600 3,600 600 2,600 80 920 50 460 $ 22,110 Mimosa $ 10,845 44, 125 66 Birch Glen $ 8,020 88,390 174 $ 76,425 $ 60,745 $ 379,135 Total $ 35,205 272,010 448

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please don't give answer & formulae in image based format.. thanku

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
Carpet-cleaning contract
Contract to repaint rooms
Revenue (000s)
Square feet
Rooms
Assets (000s)
Pine
Valley
$ 6,550
58,585
Oak Glen
$ 9,790
80,910
122
86
$ 97,525 $ 144,440
$ 9,200
4,600
3,600
600
2,600
80
920
50
460
$ 22,110
Mimosa
$ 10,845
44,125
66
$ 76,425
Birch Glen
$ 8,020
88,390
174
$ 60,745
Total
$ 35,205
272,010
448
$ 379,135
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 Carpet-cleaning contract Contract to repaint rooms Revenue (000s) Square feet Rooms Assets (000s) Pine Valley $ 6,550 58,585 Oak Glen $ 9,790 80,910 122 86 $ 97,525 $ 144,440 $ 9,200 4,600 3,600 600 2,600 80 920 50 460 $ 22,110 Mimosa $ 10,845 44,125 66 $ 76,425 Birch Glen $ 8,020 88,390 174 $ 60,745 Total $ 35,205 272,010 448 $ 379,135
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 answers in thousands rounded to the nearest dollar.)
Allocated cost
Pine Valley
$ 4,113
Allocation Base
Revenue
Square feet
Number of rooms
Assets
Required 1 Required 2 Required 3
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Allocation Base
Revenue
Square feet
Number of rooms
Assets
$
$
Total cost allocated
69
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.)
$
$
> Answer is complete but not entirely correct.
Total
18,000 X
2,600 X
510 X
1,000 X
Oak Glen
Mimosa
$ 6,148 $ 6,811
Required 3
Complete this question by entering your answers in the tabs below.
$
< Required 1
Pine Valley
6,550 X
58,585 x
86 x
97,525 X
$ 162,746
< Required 1
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.)
$
Oak Glen
Birch Glen
$
9,790 X
80,910 X
122 x
144,440 x
$ 235,262
< Required 2
$
5,036 * $
Required 2 >
$ 131,461
Required 3 >
Mimosa
10,845 X
44,125 x
66 x
76,425 x
Total
22,108
$
Birch Glen
8,020 X
88,390 x
174 X
60,745 x
$ 157,329
Required 3 >
Total
35,205
272,010
448
379,135
$ 686,798
$
Transcribed Image Text: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 answers in thousands rounded to the nearest dollar.) Allocated cost Pine Valley $ 4,113 Allocation Base Revenue Square feet Number of rooms Assets Required 1 Required 2 Required 3 Required 1 Required 2 Complete this question by entering your answers in the tabs below. Allocation Base Revenue Square feet Number of rooms Assets $ $ Total cost allocated 69 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.) $ $ > Answer is complete but not entirely correct. Total 18,000 X 2,600 X 510 X 1,000 X Oak Glen Mimosa $ 6,148 $ 6,811 Required 3 Complete this question by entering your answers in the tabs below. $ < Required 1 Pine Valley 6,550 X 58,585 x 86 x 97,525 X $ 162,746 < Required 1 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.) $ Oak Glen Birch Glen $ 9,790 X 80,910 X 122 x 144,440 x $ 235,262 < Required 2 $ 5,036 * $ Required 2 > $ 131,461 Required 3 > Mimosa 10,845 X 44,125 x 66 x 76,425 x Total 22,108 $ Birch Glen 8,020 X 88,390 x 174 X 60,745 x $ 157,329 Required 3 > Total 35,205 272,010 448 379,135 $ 686,798 $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Strategic business units
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education