The following cost data pertain to the operations of Montgomery Department Store

Question

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store nánager's salary-Evendale Store Apparel Department sales commission-Evendale Store Store utilities-Evendale Store Apparei Department manager's salary-Evendale Store Central varehouse tease com Janitorial costs-Evendale Store 63,900 115,700 45, 600 21,200 $ 10,600 $ 13,500 9,350 17,600 $ ,100 0.5 points Skipped Print References The Evendale Store is just 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 Total direct costs for the Apparel Department that are aso variable costs

Explanation / Answer

1) Calculation of total direct costs for the Apparel Department (Amts in $)

2) Calculation of direct costs for the Evendale Store (Amounts in $)

3) Calculation of total direct Variable costs for Apparel Deptt. (Amts in $)

Apparel Department Cost of Sales-Evendale Store 115,700 Apparel Department Sales Commission-Evendale Store 10,600 Apparel Department Manager's Salary-Evendale Store 9,350 Total Direct Costs for the Apparel Department 135,650

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