Question

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale Store Store utilities-Evendale Store Apparel Department manager's salary-Evendale Store Central warehouse lease cost Janitorial costs-Evendale Store $ 64,200 $113,700 $ 58,500 $ 14,800 $ 7,700 $ 11,300 $ 8,500 $ 18,800 $ 12,550 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? 1. Total direct costs for the Apparel Department 2. Total direct costs for the Evendale Store 3. Total direct costs for the Apparel Department that are also variable costs

Answer 1

Solution:

1)

Total direct costs for the Apparel Department	129,900
Total direct costs for the Evendale store	168,550
Total direct costs for the Apparel Department that are also variable	121,400

Working:

PART-1)
Apparel Department cost of sales - Evendale store	113,700
Apparel Department sales commission - Evendale store	7,700
Apparel Department manager's salary - Evendale store	8,500
Direct costs - Apparel Department	129,900
PART-2)
Apparel Department cost of sales - Evendale store	113,700
Store manager's salary - Evendale store	14,800
Apparel Department sales commission - Evendale store	7,700
Store utilities - Evendale store	11,300
Apparel Department manager's salary - Evendale store	8,500
Janitorial cost - Evendale store	12,550
Direct costs - Evendale store	168,550
PART-3)
Apparel Department cost of sales - Evendale store	113,700
Apparel Department sales commission - Evendale store	7,700
Direct variable costs - Apparel Department	121,400

2) All are correct

Schick states that source of knowldge includes introspection in regard to the dispositions (emotions); sensory knowledge and logic