Please don't give answer & formulae in image based format.. thanku Woodland Hotels Incorporated operates four resorts in the heavily wooded areas of northern California. The resorts are named afterthe predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to eachof 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 salariesInterest on resort purchaseAdvertisingHousekeepingDepreciation on reservations computerRoom maintenanceCarpet-cleaning contractContract to repaint roomsRevenue (000s)Square feetRoomsAssets (000s)PineValley$ 6,55058,585Oak Glen$ 9,79080,91012286$ 97,525 $ 144,440$ 9,2004,6003,6006002,6008092050460$ 22,110Mimosa$ 10,84544,12566$ 76,425Birch Glen$ 8,02088,390174$ 60,745Total$ 35,205272,010448$ 379,135 Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Based on annual revenue, what amount of the central office costs are allocated to each resort? (Do not round intermediatecalculations. Enter your answers in thousands rounded to the nearest dollar.)Allocated costPine Valley$ 4,113Allocation BaseRevenueSquare feetNumber of roomsAssetsRequired 1 Required 2 Required 3Required 1 Required 2Complete this question by entering your answers in the tabs below.Allocation BaseRevenueSquare feetNumber of roomsAssets$$Total cost allocated69Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the fourpools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively.Which costs should be collected in each of the four pools? (Enter your answers in thousands of dollars.)$$> Answer is complete but not entirely correct.Total18,000 X2,600 X510 X1,000 XOak GlenMimosa$ 6,148 $ 6,811Required 3Complete this question by entering your answers in the tabs below.$< Required 1Pine Valley6,550 X58,585 x86 x97,525 X$ 162,746< Required 1Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort? (Do not round intermediatecalculations. Enter your answers in thousands rounded to the nearest dollar.)$Oak GlenBirch Glen$9,790 X80,910 X122 x144,440 x$ 235,262< Required 2$5,036 * $Required 2 >$ 131,461Required 3 >Mimosa10,845 X44,125 x66 x76,425 xTotal22,108$Birch Glen8,020 X88,390 x174 X60,745 x$ 157,329Required 3 >Total35,205272,010448379,135$ 686,798$

The process of allocating a percentage of a company's overall costs to certain products, divisions,…

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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...

See similar textbooks

Similar questions

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.) $ 8,400 Administrative and executive salaries 4,200 Interest on resort purchase 3,200 Advertising 600 Housekeeping 2,200 Depreciation on reservations computer 80 Room maintenance 840 Carpet-cleaning contract 50 Contract to repaint rooms 420 $ 19,990 Pine Valley Oak Glen Mimosa Birch Glen Total Revenue (000s) $ 5,750 $ 8,595 $ 9,520 $ 7,040 $ 30,905 Square feet 56,510 78,035 42,565 85,260 262,370 Rooms 86 122 66 174 448 Assets (000s) $ 94,070 $…
Syracuse Beverages Inc. has three plants that make and bottle cola, lemon-lime, and miscellaneous flavored beverages, respectively. The raw materials, labor costs, and automated technology are comparable among the three plants. Top management has initiated an incentive compensation plan whereby the workers and managers of the plant with the lowest unit cost per bottle will receive a year-end bonus. The results, approved by the plant manager and reported by the plant controllers at each location, were as follows ITEM DEWITT FAYETTEVILLE MANLIUS Materials 200,000 450,000 325,000 Labor 170,000 375,000 250,000 Overhead 340,000 750,000 500,000 TOTAL 710,000 1575,000 1075,000 Equivalents Units of Production Completed 3500,000 6200,000 6450,000 Ending Work in process 100,000(50% complete) 400,000(25% complete Equivalent units 3550,000 6300,000 6450,000 Unit Cost $0.20 $0.25 $0.167 When provided copies of the results as a justification for distributing the…
WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $82,000 annually and one salaried estimator who is paid $46,000 annually. The corporate office has two office administrative assistants who are paid salaries of $50,000 and $37,000 annually. The president's salary is $153,000. How much of these salaries are common fixed expenses?
Adrian Cursio & Associates is a consulting business that operates in a rented office in Melbourne CBD, offering taxation, superannuation and insurance advice. The office has a main reception area (servicing all departments) with the remaining floor space allocated to the three departments.The following information is provided for the three departments: Divisional costs includes professional staff wages to directly providing advice and conduct consulting to clients. The common cost made up of reception wages and rent is totalled at $165,000. If the common cost is allocated by income, what is the profit (or loss) made by the Insurance division? a. $37,784.82 b. $35,000 c. $355,000 d. $142,215.18
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company’s human resources (HR) department. The annual costs of the HR department total $20,000,000 a year. You have the following selected information about the two divisions: Number of Employees Wage and Salary Expense ($000) Northern 2,640 $ 210,800 Southern 2,160 129,200 Required: Determine the cost allocation if $12.5 million of the HR costs are fixed and allocated on the basis of employees, and the remaining costs, which are variable, are allocated on the basis of the wage and salary expense total. Note: Do not round intermediate calculations. Enter your answers in dollars, not in millions or thousands.
Willingham Construction is in the business of building high-priced, custom, single-family homes. The company,headquartered in Anaheim, California, operates throughout the Southern California area. The construction periodfor the average home built by Willingham is six months, although some homes have taken as long as nine months.You have just been hired by Willingham as the assistant controller and one of your first tasks is to evaluate thecompany’s revenue recognition policy. The company presently recognizes revenue upon completion for all of itsprojects and management is now considering whether revenue recognition over time is appropriate.Required:Write a 1- to 2-page memo to Virginia Reynolds, company controller, describing the differences between theeffects of recognizing revenue over time and upon project completion on the income statement and balance sheet.Indicate any criteria specifying when revenue should be recognized. Be sure to include references to GAAP asthey pertain to…
One division of Heartwood Cabinets anticipates the following costs for the next year: Cost Budget Facilities rent $ 72,000 Utilities $ 28,000 Taxes $ 17,000 Wages for production workers $ 555,000 Management salaries and benefits $ 320,000 Wages for shipping and handling workers $ 256,000 Direct materials for cabinets $ 350,000 Supplies $ 38,000 Indirect materials $ 120,000 Equipment rental $ 32,000 Advertising $ 25,000 Repairs and maintenance $ 36,000 Travel $ 95,000 The company uses machine hours as the sole cost driver of variable overhead. Based on prior years, Heartwood estimates it will take 0.30 of machine hours per cabinet produced. Budgeted output is 75,000 cabinets. Actual output is 73,000 cabinets and it really takes 0.40 machine hours to produce one cabinet. Actual variable overhead costs are $474,500. Actual fixed overhead costs are $600,000. Required: Calculate budgeted variable overhead for the year. Calculate the variable overhead…
Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of the company’s human resources (HR) department. The annual costs of the HR department total $25,000,000 a year. You have the following selected information about the two divisions: Number of Employees Wage and Salary Expense ($000) Northern 2,915 $ 241,800 Southern 2,385 148,200 Required: What is the HR cost that is charged to each division if the number of employees is used as the allocation basis? What is the HR cost that is charged to each division if the wage and salary expense total is used as the allocation basis?
Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting services through its three branch offices in Columbus, Cincinnati, and Dayton, Ohio. The company allocates resources and bonuses to the three branches based on the net income of the period. The results of the firm’s performance for the most recent year follows ($ in thousands): Columbus Cincinnati Dayton Total Sales $ 1,500 $ 1,419 $ 1,067 $ 3,986 Less: Direct labor 382 317 317 1,016 Direct materials 281 421 185 887 Overhead 710 589 589 1,888 Net income $ 127 $ 92 $ (24) $ 195 Miami Valley accumulates overhead items in one overhead pool and allocates it to the branches based on direct labor dollars. For this year, the predetermined overhead rate was $1.859 for every direct labor dollar incurred by an office. The overhead pool includes rent, depreciation, and taxes, regardless of which office incurred the expense. Some branch managers complain that the…
Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and theother in Bernalillo, New Mexico. The owner of Biotechtron centralized the legal services functionin the Yuma office and had both laboratories send any legal questions or issues to the Yuma office. The legal services support center has budgeted fixed costs of $160,000 per year and a budg-eted variable rate of $65 per hour of professional time. The normal usage of the legal services cen-ter is 2,600 hours per year for the Yuma office and 1,400 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year.Required:1. Determine the amount of legal services support center costs that should be assigned to eachoffice. 2. Since the offices produce services, not tangible products, what purpose is served by allocat-ing the budgeted costs? 3. Now, assume that during the year, the legal services center incurred actual fixed costs of$163,000 and actual variable…
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of the company's computer server network. The annual common costs are $2,860,000. You have been provided with the following information for the upcoming year: Connections Time on Network (hours) Commercial 51,000 121,000 Retail 61,000 151,000 Consumer 108,000 378,000 What is the allocation rate for the upcoming year, assuming Mesa Telcom uses the single-rate method and allocates common costs based on the time on the network? Multiple Choice $4.40. $3.29. $23.64. $19.36.
Renslen, Inc., a truck manufacturing conglomerate, has recently purchased two divisions: Meyers Service Company and Wellington Products, Inc. Meyers provides maintenance service on large truck cabs for 10-wheeler trucks, and Wellington produces air brakes for the 10-wheeler trucks. The employees at Meyers take pride in their work, as Meyers is proclaimed to offer the best maintenance service in the trucking industry. The management of Meyers, as a group, has received additional compensation from a 10 percent bonus pool based on income before income taxes and bonus. Renslen plans to continue to compensate the Meyers management team on this basis as it is the same incentive plan used for all other Renslen divisions, except for the Wellington division. Wellington offers a high-quality product to the trucking industry and is the premium choice even when compared to foreign competition. The management team at Wellington strives for zero defects and minimal scrap costs; current scrap levels are at 2 percent. The incentive compensation plan for Wellington management has been a 1 percent bonus based on gross margin. Renslen plans to continue to compensate the Wellington management team on this basis. The following condensed income statements are for both divisions for the fiscal year ended May 31, 20x1: Renslen, Inc. Divisional Income Statements For the Year Ended May 31, 20x1 Each division has 1,000,000 of management salary expense that is eligible for the bonus pool. Renslen has invited the management teams of all its divisions to an off-site management workshop in July where the bonus checks will be presented. Renslen is concerned that the different bonus plans at the two divisions may cause some heated discussion. Required: 1. Determine the 20x1 bonus pool available for the management team at: a. Meyers Service Company b. Wellington Products, Inc. 2. Identify at least two advantages and disadvantages to Renslen, Inc., of the bonus pool incentive plan at: a. Meyers Service Company b. Wellington Products, Inc. 3. Having two different types of incentive plans for two operating divisions of the same corporation can create problems. a. Discuss the behavioral problems that could arise within management for Meyers Service Company and Wellington Products, Inc., by having different types of incentive plans. b. Present arguments that Renslen, Inc., can give to the management teams of both Meyers and Wellington to justify having two different incentive plans.