King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?
King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales
of a given type of appliance and sales support. In July, the following costs were recorded for
refrigerators:
Professional sales staff
commissions
Amortization on office space
Selling supplies
Office staff expenses
Customer relations
Training expenses
Utilities
$84,000
4,000
6,400
24,800
8,600
6,000
1,400
Required:
a. Which of the costs will be subject to direct cost tracing?
b. What is the total cost for refrigerators?
c. What is the total cost of the Sales Support for refrigerators?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e782426-d1f0-40f7-a6e2-a21caf7f429b%2F2ef85c7a-7c46-490a-beab-b9d2e5fbc75d%2F694tg2f_processed.png&w=3840&q=75)
Transcribed Image Text:King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales
of a given type of appliance and sales support. In July, the following costs were recorded for
refrigerators:
Professional sales staff
commissions
Amortization on office space
Selling supplies
Office staff expenses
Customer relations
Training expenses
Utilities
$84,000
4,000
6,400
24,800
8,600
6,000
1,400
Required:
a. Which of the costs will be subject to direct cost tracing?
b. What is the total cost for refrigerators?
c. What is the total cost of the Sales Support for refrigerators?
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