Cost Allocation Class Assignment.docx - Chapter 9 Class Assignment John Ruiz is the Corporate Director of Marketing for the Horizon Hotel chain The

Cost Allocation Class Assignment.docx - Chapter 9 Class...

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Chapter 9 Class Assignment John Ruiz is the Corporate Director of Marketing for the Horizon Hotel chain. The company operates three properties in Las Vegas, Nevada. Each property contributes to the cost of employing the Corporate Director of Marketing as well as the travel expense. Corporate Marketing Expense Position Salary Office and Travel Expense Total Costs Corporate Marketing Director $290,000 $40,000 $330,000 Property # of Rooms in Property # of Rooms Sold Net Income Galaxy 500 80% 900,000 Saturn 300 75% 400,000 Moon 200 85% 600,000 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 330,000 3 110,000 b. What is the allocation amount for each hotel if the allocation is made on the basis of property size? 1
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Property # of Rooms in Property
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  • Summer '15
  • Corporate Director of Marketing, allocation amount

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