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1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4] The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the
1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4] 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 $ 53,900 $ 94,000 $ 65,400 $ 21,900 $7,350 $ 20,200 $ 9,500 $ 19,700 $ 11,850 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 Evendale Store 3. Total direct costs for the Apparel Department that are also variable costs Miller Company's total sales are $195,000. The company's direct labor cost is $23,400, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $29,250 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. Required: 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost? 4. What is the total variable selling and administrative cost? 5. What is the total variable cost? 6. What is the total fixed cost? 7. What is the total contribution margin? 1. Total manufacturing overhead cost 2. Total direct materials cost 3. Total manufacturing cost 4. Total variable selling and administrative cost 5. Total variable cost 6. Total fixed cost 7. Total contribution margin
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