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Problem 1-18 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,

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Problem 1-18 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 $56,000 Apparel Department cost of sales-Evendale Store $90,000 Corporate headquarters building lease $48,000 Store manager's salary-Evendale Store $12,000 Apparel Department sales commission-Evendale Store $7,000 Store utilities-Evendale Store $11,000 Apparel Department manager's salary-Evendale Store $8,000 Central warehouse lease cost Janitorial costs-Evendale Store $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 total departmental sales?

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