SeaScape Resorts Owns and Operates Two Resorts in a Coastal

question 86

Multiple Choice

SeaScape 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.
The nontraceable operating costs of the resort amount to $3 million.By careful study,the management accountant at SeaScape has determined that,while the costs are not directly traceable,the total of $3 million could be fairly allocated to the four cost drivers as follows.
Determine the amount of cost to be allocated to the Harborview Resort using revenue as an
Allocation base.

• A)$1,050,000
• B)$1,950,000
• C)$1,500,000
• D)$420,000
• E)$1,680,000

---

Definitions:

Personal Frustration

The feeling of dissatisfaction or disappointment arising from obstacles that hinder one's goals or desires, often leading to stress or conflict.

Self-determination Theory

A theory of motivation that is concerned with supporting our natural or intrinsic tendencies to behave in effective and healthy ways.

Competence

The ability or skill to perform a task effectively or to a satisfactory standard.

Distress

The effect of unpleasant and undesirable stressors.