Chapter 1, Problem 18P

PROBLEM 1—18 Direct and Indirect Costs; Variable Costs

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July.

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?