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The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month...

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.

Corporate headquarters building lease $ 86,200
Cosmetics Department sales commissions--Northridge Store $ 5,560
Corporate legal office salaries $ 66,800
Store manager's salary-Northridge Store $ 19,100
Heating-Northridge Store $ 14,300
Cosmetics Department cost of sales--Northridge Store $ 32,000
Central warehouse lease cost $ 8,800
Store security-Northridge Store $ 22,100
Cosmetics Department manager's salary--Northridge Store $ 4,790

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

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Answer #1

Solution:

Direct cost of cosmetics department = Cosmetics Department sales commissions + Cosmetics Department cost of sales + Cosmetics Department manager's salary

= $5,560 + $32,000 + $4,790

= $42,350

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