Larry's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. For refrigerators in July, the following costs were recorded:

Professional sales staff commissions....................$84,000
Amortization on office space........................................4,000
Selling supplies    ............................................................6,400
Office staff expenses     .................................................24,800
Customer relations    .......................................................8,600
Training expenses    ..........................................................6,000
Utilities     .............................................................................1,400

Required:

a.   Which of the costs will be subject to direct cost tracing?

b.   What is the total cost for refrigerators?

Answer rating: 100% (QA)

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