8 The following cost data pertain to the operations of Swestka Department Stores

ID: 2711698 • Letter: 8

Question

8 The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July. Corporate headquarters building lease $85,400 Cosmetics Department sales commissions--Northridge Store $5,000 Corporate legal office salaries $65,000 Store manager's salary-Northridge Store $19,600 Heating-Northridge Store $11,500 Cosmetics Department cost of sales--Northridge Store $32,700 Central warehouse lease cost $8,200 Store security-Northridge Store $17,600 Cosmetics Department manager's salary--Northridge Store $4,680 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?

$158,600

$85,400

$42,380

$41,980

Explanation / Answer

Indirect costs are the costs that are not directly related with cost objects. It includes Administration, Personnel management and security costs.

Cost

Amount

corporate headquarter building lease

85400

Legal office salary

65000

central warehouse lease cost

8200

Total Indirect cost

158600