Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4] The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July. Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease $ 78,600 $ 109,500 $ 58,200 $ 18,600 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 $ 10,700 $ 16,100 $ 8,150 $ 20,400 $ 13,000 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
Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4] The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July. Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease $ 78,600 $ 109,500 $ 58,200 $ 18,600 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 $ 10,700 $ 16,100 $ 8,150 $ 20,400 $ 13,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4]
The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July.
Corporate legal office salaries
Apparel Department cost of sales-Evendale Store
Corporate headquarters building lease
$ 78,600
$ 109,500
$ 58,200
$ 18,600
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
$ 10,700
$ 16,100
$ 8,150
$ 20,400
$ 13,000
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c849427-7e50-4c5d-be8f-636e730758b0%2F88c3a31a-4f7f-41b2-9e04-4cf9137df64d%2Fiyeuz5s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4]
The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July.
Corporate legal office salaries
Apparel Department cost of sales-Evendale Store
Corporate headquarters building lease
$ 78,600
$ 109,500
$ 58,200
$ 18,600
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
$ 10,700
$ 16,100
$ 8,150
$ 20,400
$ 13,000
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
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