x M Question 6-QUIZ- CH 18-C X Gran Project 6 education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%252Fw... Saved Help Exercises 18-41 (Algo) Allocation of Central Costs; Profit Centers [LO 18-3] 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 $ 12,100 5,700 4,700 600 3,700 80 1,210 50 570 $ 28,710 Revenue (000s) Pine Valley $ 9,150 Oak Glen $ 13,675 Square feet 64,290 Rooms 86 88,765 122 Mimosa $ 15,150 48,415 66 Birch Glen $ 11,205 96,950 174. Total $ 49,180 298,420 448 Assets (000s) $ 83,855 Required: $107,015 $ 158,465 $ 66,630 $415,965 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. * # 3 20 $ 4 000 000 % 5 < Prev 66 6 of 10 Next > MacBook Pro 87 & IA ( 8 9 0 x M Question 6-QUIZ- CH 18-C X Project 6 x + mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%252FW... 18 i Saved Assets (000s) $ 107,015 $158,465 $ 83,855 $ 66,630 $415,965 ☆ " Help 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) Allocation Base Revenue Square feet Number of rooms Assets Total cost allocated # 3 80 Pine Valley $ 54 Oak Glen Mimosa Birch Glen Total < Required 2 Required 3 > < Prev 6 of 10 Next > MacBook Pro 888 % 85 6 & 7 * 8 9 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercises 18-41 (Algo) Allocation of Central Costs; Profit Centers [LO 18-3]
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
$ 12,100
5,700
4,700
600
3,700
80
1,210
50
570
$ 28,710
Revenue (000s)
Pine
Valley
$ 9,150
Oak Glen
$ 13,675
Square feet
64,290
Rooms
86
88,765
122
Mimosa
$ 15,150
48,415
66
Birch Glen
$ 11,205
96,950
174.
Total
$ 49,180
298,420
448
Assets (000s)
$ 83,855
Required:
$107,015 $ 158,465
$ 66,630 $415,965
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.
*
#
3
20
$
4
000
000
%
5
< Prev
66
6 of 10
Next >
MacBook Pro
87
&
IA
(
8
9
0
Transcribed Image Text:x M Question 6-QUIZ- CH 18-C X Gran Project 6 education.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%252Fw... Saved Help Exercises 18-41 (Algo) Allocation of Central Costs; Profit Centers [LO 18-3] 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 $ 12,100 5,700 4,700 600 3,700 80 1,210 50 570 $ 28,710 Revenue (000s) Pine Valley $ 9,150 Oak Glen $ 13,675 Square feet 64,290 Rooms 86 88,765 122 Mimosa $ 15,150 48,415 66 Birch Glen $ 11,205 96,950 174. Total $ 49,180 298,420 448 Assets (000s) $ 83,855 Required: $107,015 $ 158,465 $ 66,630 $415,965 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. * # 3 20 $ 4 000 000 % 5 < Prev 66 6 of 10 Next > MacBook Pro 87 & IA ( 8 9 0
x
M Question 6-QUIZ- CH 18-C X
Project 6
x +
mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%252FW...
18 i
Saved
Assets (000s)
$ 107,015 $158,465 $ 83,855 $ 66,630 $415,965
☆
"
Help
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?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
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.)
Allocation Base
Revenue
Square feet
Number of rooms
Assets
Total cost allocated
#
3
80
Pine Valley
$
54
Oak Glen
Mimosa
Birch Glen
Total
< Required 2
Required 3
>
< Prev
6 of 10
Next >
MacBook Pro
888
%
85
6
&
7
* 8
9
0
Transcribed Image Text:x M Question 6-QUIZ- CH 18-C X Project 6 x + mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%252FW... 18 i Saved Assets (000s) $ 107,015 $158,465 $ 83,855 $ 66,630 $415,965 ☆ " Help 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) Allocation Base Revenue Square feet Number of rooms Assets Total cost allocated # 3 80 Pine Valley $ 54 Oak Glen Mimosa Birch Glen Total < Required 2 Required 3 > < Prev 6 of 10 Next > MacBook Pro 888 % 85 6 & 7 * 8 9 0
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