The following cost data pertain to the operations of Montgomery Department Stores, incorporated, for the s Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale store Stere utilities-Evendale store Apparel Department manager's salary-Evendale Store Central warehouse lease cost Janitorial costs-Evendale Store $546,000 $ 90,000 $ 40,000 $ 12,000 $7,000 $ 11,000 $8,000 $ 35,000 $ 9,000 The Evendale Store is one of many stores owned and operated by the company The Apparel Department i at the Evendale Store. The central warehouse serves all of the company's stores 1. Total direct costs for the Apparel Department 2. Total direct costs f the Evendale Store 3. Total direct costs for the Apparel Department that are also variable coses Aly 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 tuts departe sales?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
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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
Apparel Department cost of sales-Evendale Store
Corporate headquarters building lease
Store manager's salary-Evendale Store
Apparel Department sales commission-Evendale Store
Store utilities-Evendale Store
Apparel Department manager's salary-Evendale Store
Central warehouse lease cost
Janitorial costs-Evendale Store
$ 56,000
$ 90,000
$ 48,000
$ 12,000
$ 7,000
$ 11,000
$ 8,000
$ 15,000
$9,000
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 totes department
sales?
1. Total direct costs for the Apparel Department
2. Total direct costs for the Evendale Store
3. Total direct costs for the Apparel Department that are also variable costs
Transcribed Image Text:The following cost data pertain to the operations of Montgomery Department Stores, incorporated, for the month of July Corporate legal office salaries Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale Store Store utilities-Evendale Store Apparel Department manager's salary-Evendale Store Central warehouse lease cost Janitorial costs-Evendale Store $ 56,000 $ 90,000 $ 48,000 $ 12,000 $ 7,000 $ 11,000 $ 8,000 $ 15,000 $9,000 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 totes department sales? 1. Total direct costs for the Apparel Department 2. Total direct costs for the Evendale Store 3. Total direct costs for the Apparel Department that are also variable costs
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