The following cost data pertain to the operations of Lefthand Department Stores,

Question

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

Corporate legal office salaries

$74,000
Shoe Department cost of sales,
Brentwood Store

$35,000
Corporate headquarters building lease

$78,000
Store manager's salary
Brentwood Store

$14,000
Shoe Department sales commissions,
Brentwood Store

$5,000
Store utilities,
Brentwood Store

$14,000
Shoe Department manager's salary,
Brentwood Store

$3,000
Central warehouse lease cost

$10,000
Janitorial costs, Brentwood Store

$8,000

The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.


What is the total amount of the costs listed above that are direct costs of the Shoe Department?

A. $40,000
B. $79,000
C. $35,000
D. $43,000


I'm getting $43,000 and just wanted to verify if that was right. If it's not, can you possibly explain how to get the answer? My textbook doesn't do a good job.

Thanks in advance!

Explanation / Answer

78000+74000+10000=162000 c

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