Front office personnel desk clerks, etc.$ Administrative and executive salariesInterest on resort purchaseAdvertisingHousekeepingDepreciation on reservations computerRoom maintenanceCarpetcleaning contractContract to repaint rooms$
Pine ValleyOak GlenMimosaBirch GlenTotalRevenue s$ $ $ $ $ Square feetRoomsAssets s$ $ $ $ $
Required:
Based on annual revenue, what amount of the central office costs are allocated to each resort?
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?
Using the cost pool system in requirement how much of the central office costs would be allocated to each resort?
