What is the allocation amount for each hotel

Assignment Help Financial Accounting

Reference no: EM131207729

Question 1

After completing the table, answer the questions that follow:

Thandi's Hotel Darla's Hotel250 rooms 250 roomsDay Rooms Sold ADR Occ % RevPAR Rooms Sold ADR Occ % RevPAR

Monday 205 $117.21 82.00% 158 63.20% $62.64

Tuesday 230 135.45 92.00% 124.61 249 89.53 99.60% 89.17

Wednesday 226 131.25 90.40% 118.65 230 91.14 83.85

Thursday 228 132.22 120.58 248 92.15 99.20% 91.41

Friday 195 78.00% 89.86 138 101.51 56.03

Five Day Total 126.8 81.80% 76.62

a. What was Thandi's RevPar on Monday?

b. What was Darla's ADR on Monday?

c. What was Darla's occupancy % on Wednesday?

d. What was Thandi's occupancy % on Thursday?

e. What was Thandi's ADR on Friday?

f. What was Darla's occupancy % on Friday?

g. How many rooms did Thandi sell during the five days?

h. What was Thandi's occupancy% for the five days?

i. What was Thandi's five day RevPAR total?

j. How many rooms did Darla sell during the five days?

k. What was Darla's ADR for the five day period?

l. Did Thandi or Darla have a higher RevPAR during this five-day period? What do you think was the reason for this difference?

Question 2

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

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

Reference no: EM131207729

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