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

Corporate legal office salaries $ $69,000$

Apparel Department cost of salesEvendale Store $ $117,900$

Corporate headquarters building lease $ $63,900$

Store managers salaryEvendale Store $ $18,000$

Apparel Department sales commissionEvendale Store $ $10,000$

Store utilitiesEvendale Store $ $13,400$

Apparel Department managers salaryEvendale Store $ $12,800$

Central warehouse lease cost $ $23,800$

Janitorial costsEvendale Store $ $11,200$

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 companys 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 Departments direct costs that are also variable costs with respect to total departmental sales?

Answer rating: 100% (QA)

To determine the total amount of costs that are direct costs of the Apparel Department we need to id... View the full answer