Question

he following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month...

he following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries $ 61,200 Apparel Department cost of sales—Evendale Store $ 108,900 Corporate headquarters building lease $ 54,300 Store manager’s salary—Evendale Store $ 17,200 Apparel Department sales commission—Evendale Store $ 11,500 Store utilities—Evendale Store $ 12,900 Apparel Department manager’s salary—Evendale Store $ 10,700 Central warehouse lease cost $ 19,100 Janitorial costs—Evendale Store $ 12,400 The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company’s stores. Required: 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department? 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store? 3. What is the total amount of the Apparel Department’s direct costs that are also variable costs with respect to total departmental sales?

The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company’s stores.

Required:

1. What is the total amount of the costs listed above that are direct costs of the Apparel Department?

2. What is the total amount of the costs listed above that are direct costs of the Evendale Store?

3. What is the total amount of the Apparel Department’s direct costs that are also variable costs with respect to total departmental sales?

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Answer #1
1
Apparel Department cost of sales—Evendale Store 108900
Apparel Department sales commission—Evendale Store 11500
Apparel Department manager’s salary—Evendale Store 10700
Total direct costs for the Apparel Department 131100
2
Apparel Department cost of sales—Evendale Store 108900
Store manager’s salary—Evendale Store 17200
Apparel Department sales commission—Evendale Store 11500
Store utilities—Evendale Store 12900
Apparel Department manager’s salary—Evendale Store 10700
Janitorial costs—Evendale Store 12400
Total direct costs for the Evendale Store 173600
3
Apparel Department cost of sales—Evendale Store 108900
Apparel Department sales commission—Evendale Store 11500
Total direct costs for the Apparel
Department that are also variable costs
120400
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