t html Help Save Ch 5 The following cost data pertain to th

t html Help Save & Ch 5 The following cost data pertain to the operations of Montgomery Department Stores, Inc, for the month of July e headquarters building lease le Store 116,1e0 56,400 18,3e0 Store Apparel Store Apparel le Store 17,800 9,950 24,000 13,700 Janitorial costs-Evendale Store 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 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?

Solution

1 Apparel department cost of sales 116100 Apparel department sales commission 7950 Apparel department manager\'s salary 9950 Total direct costs for Apparel department 134000 2 Apparel department cost of sales 116100 Store manager\'s salary 18300 Store utilities 17800 Apparel department sales commission 7950 Apparel department manager\'s salary 9950 Janitorial costs 13700 Total direct costs for Evendale store 183800 3 Apparel department cost of sales 116100 Apparel department sales commission 7950 Total direct costs for Apparel department that are variable costs 124050