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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 (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

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
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 (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 $
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