Question

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of 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 $ 60,980 $ 117, 30e s 53,480 $ 12,400 $ 9,850 $ 18,8e0 $ 10,650 $ 16,eee $ 9,700 The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of m 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 depart sales?

Please explain and the formulas you used to answer the question.

Answer 1

Hi

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Direct cost is directly related to the earning of that particular department.