Question: Problem 1-18 Direct and Indirect Costs: Variable Costs [LO1-1, LO1-4) The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the
Problem 1-18 Direct and Indirect Costs: Variable Costs [LO1-1, LO1-4) The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries Apparel Department cost of sales-vendale Store Corporate headquarters building lease Store sanger's salary-Evendale Store Apparel Department sales commission-Evendale Store Store utilities-vendale Store Apparel Department manager's salary-tvendale Store Central warehouse lease cost Janitorial costs-Evendale Store $ 63,900 $ 115,700 5 45,600 $ 21,200 $ 10,600 5 13.50 $ 9.350 5 17,600 $ 9,100 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 1 Total direct costs for the Apparel Department 2 Total de costs for the Evandle Store 3. Total directors for the Apparel Department that are also variable costs Next > O
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