TB MC Qu. 18-107 (Algo) The amount of cost to be allocated to the Harborview Resort: Sand and Sea Resorts Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below. Revenue (000s) Square feet Rooms Assets (000s) Harborview $ 3,500 75,000 60 $ 178,000 Cost Driver Revenue Square feet Rooms Assets (000s) The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows. Amount Allocated Crystal Coast $ 6,500 225,000 140 $ 712,000 $ 290,000 165,000 600,000 2,945,000 Total $ 10,000 300,000 200 $ 890,000 Using the information regarding the allocation of the $4 million to the four cost drivers, determine the amount of cost to be allocated to the Harborview Resort.

TB MC Qu. 18-107 (Algo) The amount of cost to be allocated to the Harborview Resort: Sand and Sea Resorts Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below. Revenue (000s) Square feet Rooms Assets (000s) Harborview $ 3,500 75,000 60 $ 178,000 Cost Driver Revenue Square feet Rooms Assets (000s) The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows. Amount Allocated Crystal Coast $ 6,500 225,000 140 $ 712,000 $ 290,000 165,000 600,000 2,945,000 Total $ 10,000 300,000 200 $ 890,000 Using the information regarding the allocation of the $4 million to the four cost drivers, determine the amount of cost to be allocated to the Harborview Resort.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 30P

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Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the malnland by a high bridge. One resort is located on the beach and Is called the Crystal Coast Resort. The other resort is located on the Inland waterway which passes between the town and the malnland; It is called the Harborvlew Resort. Some key Information about the two resorts for the current year Is shown below. Harborview Crystal Coast $ 6,175 250,000 Total Revenue (000s) $ 3,825 $ 10,000 Square feet 80, 000 330,000 Rooms 66 150 216 Assets (000s) $ 110,000 $ 440,000 $ 550,000 The nontraceable operating costs of the resort amount to $4000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be falrly allocated to the four cost drivers as follows. Amount Cost Driver Allocated Revenue $ 185,000 Square feet 115,000 Rooms 580,000 Assets (000s)…
Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below. Harborview Crystal Coast Total Revenue (000s) $ 3,500 $ 6,500 $ 10,000 Square feet 75,000 225,000 300,000 Rooms 60 140 200 Assets (000s) $ 160,000 $ 640,000 $ 800,000 The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows.…
Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below. Harborview Crystal Coast Total Revenue (000s) $ 3,500 $ 6,500 $ 10,000 Square feet 75,000 225,000 300,000 Rooms 60 140 200 Assets (000s) $ 100,000 $ 400,000 $ 500,000 The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows.…
Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and is called the Crystal Coast Resort. The other resort is located on the inland waterway which passes between the town and the mainland; it is called the Harborview Resort. Some key information about the two resorts for the current year is shown below. Harborview Crystal Coast Total Revenue (000s) $3,500 $6,500 $10,000 Square feet 75,000 225,000 300,000 Rooms 60 140 200 Assets (000s) $136,000 $544,000 $680,000 The nontraceable operating costs of the resort amount to $4,000,000. By careful study, the management accountant at Sand and Sea has determined that, while the costs are not directly traceable, the total of $4 million could be fairly allocated to the four cost drivers as follows. Cost Driver Amount Allocated…
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