The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries $ 62,600 Apparel Department cost of sales—Evendale Store $ 98,700 Corporate headquarters building lease $ 67,800 Store manager’s salary—Evendale Store $ 18,100 Apparel Department sales commission—Evendale Store $ 9,000 Store utilities—Evendale Store $ 12,500 Apparel Department manager’s salary—Evendale Store $ 9,700 Central warehouse lease cost $ 17,200 Janitorial costs—Evendale Store $ 12,000 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?
The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries $ 62,600 Apparel Department cost of sales—Evendale Store $ 98,700 Corporate headquarters building lease $ 67,800 Store manager’s salary—Evendale Store $ 18,100 Apparel Department sales commission—Evendale Store $ 9,000 Store utilities—Evendale Store $ 12,500 Apparel Department manager’s salary—Evendale Store $ 9,700 Central warehouse lease cost $ 17,200 Janitorial costs—Evendale Store $ 12,000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July.
| Corporate legal office salaries | $ | 62,600 |
| Apparel Department cost of sales—Evendale Store | $ | 98,700 |
| Corporate headquarters building lease | $ | 67,800 |
| Store manager’s salary—Evendale Store | $ | 18,100 |
| Apparel Department sales commission—Evendale Store | $ | 9,000 |
| Store utilities—Evendale Store | $ | 12,500 |
| Apparel Department manager’s salary—Evendale Store | $ | 9,700 |
| Central warehouse lease cost | $ | 17,200 |
| Janitorial costs—Evendale Store | $ | 12,000 |
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?
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