Question: Problem 1-18 (Algo) Direct and Indirect Costs: Variable Costs (L01-1, L01-4) The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for
Problem 1-18 (Algo) Direct and Indirect Costs: Variable Costs (L01-1, L01-4) The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July. Corporate legal office salaries $78,500 Apparel Department cost of sales-Evendale Store $ 109.500 Corporate headquarters building lease $58.200 Store manager's salary-Evendale Store Apparel Department sales commission-Evendale Store $ 10,700 Store utilities-Evendale Store $ 16,100 Apparel Department manager's salary-Evendale Store Central warehouse lease cost $ 20,400 Janitorial costs-Evendale Store $ 13,000 $ 18,600 $ 8.150 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 company's 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 Department's direct costs that are also variable costs with respect to total departmental sales? 1. Total direct costs for the Apparel Department 2 Total direct costs for the Everdele Store 3. Total direct costs for the Apparel Department that are also variable costs $128.350 $ 176,050 5 120.200 References Worksheet Problem 1-18 (Algo) Direct and Indirect Costa Vonable Costs |L01-1, 01:47
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