FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Allocation of Central Costs; Profit Centers Woodland Hotels Inc. operates four resorts in theheavily wooded areas of northern California. The resorts are named after the predominant trees at theresort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office coststo 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:[LO 18-3]Front office personnel (desk, clerks, etc.) $ 8,000Administrative and executive salaries 4,000Interest on resort purchase 3,000Advertising 600Housekeeping 2,000Depreciation on reservations computer 80Room maintenance 800Carpet-cleaning contract 50Contract to repaint rooms 400$18,930Pine Valley Oak Glen Mimosa Birch Glen TotalRevenue (000s) $ 5,350 $ 7,995 $ 8,857 $ 6,550 $ 28,752Square feet 55,475 76,599 41,774 83,664 257,512Rooms 86 122 66 174 448Assets (000s) $92,345 $136,745 $72,355 $57,499 $358,944Required1. Based on annual…arrow_forwardi need the answer quicklyarrow_forwardd Required information [The following information applies to the questions displayed below.] Use the following information: Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Total Service Department 2's Costs Cost $ 121,000 53,000 435,000 306,000 $ 915,000 3/8 x 5/8 X Percentage Service Provided to S1 0% 20 52 20% 0 What percentage of S2's costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) P1 30% 20 P2 50% 60arrow_forward
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