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 Departm

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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?

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
64, 200
Corporate headquarters building lease
Store manager's salary-Evendale Store
Apparel Department sales commission-Evendale Store
$ 113,700
58, see
14, 800
7,700
Store utilities-Evendale Store
11, 300
8,500
18, 8ee
12,550
Apparel Department manager's salary-Evendale Store
Central warehouse lease cost
24
Janitorial costs-Evendale Store
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.
Requlred:
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 varlable 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
Transcribed Image Text: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 64, 200 Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale Store $ 113,700 58, see 14, 800 7,700 Store utilities-Evendale Store 11, 300 8,500 18, 8ee 12,550 Apparel Department manager's salary-Evendale Store Central warehouse lease cost 24 Janitorial costs-Evendale Store 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. Requlred: 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 varlable 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
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