Question
Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Cost to purchase tuxedos (replaced when they show wear,
Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Cost to purchase tuxedos (replaced when they show wear, after approximately 80 - 100 rentals) $ 13,800 Salespersons salaries $ 52,800 Advertising $ 28,400 Dry cleaning $ 11,300 Sales commissions on tuxedo rentals $ 16,800 Store rent $ 11,400 Store utilities (paid at a monthly rate) $ 7,600 Store window displays $ 5,500 Depreciation on office equipment $ 10,000 Insurance $ 8,700 Presidents salary $ 76,000 Calculate each of the following, where the cost object is tuxedo rentals: a. Total variable costs. b. Total fixed costs. c. Total direct costs. d. Total indirect costs.
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