The below cost data pertain to the operations of Polek Department Stores, Inc., for the month of
Question:
The below cost data pertain to the operations of Polek Department Stores, Inc., for the month of March.
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 direct costs of the Cosmetics Department?
a) $66,000
b) $105,000
c) $62,000
d) $56,000
Corporate headquarters building lease…………………………....................…..$79,000
Cosmetics Department sales commissions, Northridge Store…….......……$6,000
Corporate legal office salaries………………………………………..........................$50,000
Store manager’s salary-Northridge Store………………………................………$14,000
Heating-Northridge Store…………………………………………......................………$11,000
Cosmetics Department cost of sales, Northridge Store……….........……....$56,000
Central warehouse lease cost……………………………………………....................$18,000
Store security-Northridge Store…………………………………………...................$14,000
Cosmetics Department manager’s salary, Northridge Store………........….$4,000
Expert Answer:
Direct cost is the cost directly traceable to a particular product department or activity The cost a... View the full answer
