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 63.900 115, 700 45,600 21,200 10,600 13,500 9,350 17,600 9, 100 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?

Answer 1

1
Apparel Department cost of sales—Evendale Store	115700
Apparel Department sales commission—Evendale Store	10600
Apparel Department manager’s salary—Evendale Store	9350
Total direct costs for the Apparel Department	135650
2
Apparel Department cost of sales—Evendale Store	115700
Store manager’s salary—Evendale Store	21200
Apparel Department sales commission—Evendale Store	10600
Store utilities—Evendale Store	13500
Apparel Department manager’s salary—Evendale Store	9350
Janitorial costs—Evendale Store	9100
Total direct costs for the Evendale Store	179450
3
Apparel Department cost of sales—Evendale Store	115700
Apparel Department sales commission—Evendale Store	10600
Total direct costs for the Apparel Department that are also variable costs	126300