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Woodland Hotels Inc, 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 $ 8,800 4,400 3,400 600 2,400 80 880 50 440 $21,050 Revenue (000) Square feet Rooms Assets (0005) Pine Valley $ 6,150 57,550 86 $ 95,795 Oak Glen $ 9,190 79, 475 Mimosa $ 10, 180 43,345 Birch Glen $ 7,530 86,795 174 $59,650 Total $ 33,050 267, 165 22 $141, 875 $75,075 $372,39 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 on the ori n u tr inundinn hennart runnfant and number of room me nnetin Alhirh Revenue (000s) Square feet Rooms Assets 70003) Pine Valley $ 6,150 57,550 86 $95,795 Oak Glen $ 9,190 79,475 122 $141,875 Mimosa $10,180 43,345 66 $75,075 Birch Glen $ 7,530 86,795 174 $59, 650 Total $ 33,050 267, 165 448 $372, 395 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? Pine Valley $ 6,150 57,550 86 $95,795 Revenue (0003) Square feet Rooms Assets (0003) Oak Glen Mimosa $ 9,190 $10,180 79,47543, 345 122 66 $141,875 $75,075 Birch Glen $ 7,530 86,795 174 $ 59, 650 Total $ 33,050 267. 448 $372, 395 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 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.) Pine Valley Oak Glen Mimosa Birch Glen Total Allocated cost $

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