Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July. Corporate legal office salaries $ 62,600 Apparel

The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July.

Corporate legal office salaries $ 62,600
Apparel Department cost of salesEvendale Store $ 98,700
Corporate headquarters building lease $ 67,800
Store managers salaryEvendale Store $ 18,100
Apparel Department sales commissionEvendale Store $ 9,000
Store utilitiesEvendale Store $ 12,500
Apparel Department managers salaryEvendale Store $ 9,700
Central warehouse lease cost $ 17,200
Janitorial costsEvendale Store $ 12,000

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 companys 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 Departments direct costs that are also variable costs with respect to total departmental sales?

image text in transcribed
Problem 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. 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 isted 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

Describe the analysis and reasoning in a tax research memo.

Answered: 1 week ago