Read question 4 scenario from your text, chapter 9 page 349, then complete the shaded areas of the following table. After completing each table, answer the question(s) that follows: Given Information:
| Corporate Marketing Expense |
|
|
| Position |
Salary |
Office and Travel Expense |
Total Costs |
| Corporate Marketing Director |
$165,000 |
$75,000 |
$240,000 |
| Corporate Revenue Manager |
$110,000 |
$60,000 |
$170,000 |
| Total Cost |
$275,000 |
$135,000 |
$410,000 |
| Property |
# of Rooms in Property |
Annual Occupancy |
Net Income |
| Denver |
425 |
70.2% |
$1,085,875 |
| Dallas |
510 |
68.6% |
$1,518,984 |
| Orlando |
820 |
64.9% |
$1,532,416 |
| Atlanta |
466 |
71.1% |
$1,932,222 |
| New York |
371 |
79.4% |
$2,353,513 |
|
Question "a" from the tables on the previous page: a. What is the allocation amount for each hotel if the allocation is made
on the basis of an "equal" per-property cost allocation? |
| Total Cost |
Number of Properties |
Cost per Property |
|
|
|
b. What is the allocation amount for each hotel if the allocation is made
on the basis of property size? |
| Property |
# of Rooms in Property |
% of Total |
Cost per Property |
| Denver |
425 |
|
|
| Dallas |
510 |
|
|
| Orlando |
820 |
|
|
| Atlanta |
466 |
|
|
| New York |
371 |
|
|
| Total |
2,592 |
|
|
c. What is the allocation amount for each hotel if the allocation is made
on the basis of number of rooms sold per year? |
| Property |
# of Rooms in Property |
Annual Occupancy |
# of Rooms Sold |
% of Total |
Cost per Property |
| Denver |
425 |
70.2% |
|
|
|
| Dallas |
510 |
68.6% |
|
|
|
| Orlando |
820 |
64.9% |
|
|
|
| Atlanta |
466 |
71.1% |
|
|
|
| New York |
371 |
79.4% |
|
|
|
| Total |
|
|
|
d. What is the allocation amount for each hotel if the allocation is made
on the basis of net income earned? |
| Property |
Net Income |
% of Total |
Cost per Property |
| Denver |
$1,085,875 |
|
|
| Dallas |
$1,518,984 |
|
|
| Orlando |
$1,532,416 |
|
|
| Atlanta |
$1,932,222 |
|
|
| New York |
$2,353,513 |
|
|
| Total |
$8,423,010 |
|