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-vendale 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-vendale Store $ 61,200 $ 108,900 $ 54,300 $ 17,200 $ 11,500 $ 12,900 $ 10,700 $ 19,100 $ 12,400 The Evendale Store is 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 Prev 1 of 5 Next >

Answer 1

1.)	Apparel Department cost of sales—Evendale Store	108,900
	Apparel Department sales commission—Evendale Store	11,500
	Apparel Department manager’s salary—Evendale Store	10,700
	Total direct costs for the Apparel Department	$ 131,100
2.)	Apparel Department cost of sales—Evendale Store	108,900
	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
	Janitorial costs—Evendale Store	12,400
	Total direct costs for the Evendale Store	$ 173,600
3.)	Apparel Department cost of sales—Evendale Store	108,900
	Apparel Department sales commission—Evendale Store	11,500
	Total direct costs for the Apparel Department that are also variable costs	$ 120,400