Question

The following cost data pertain to the operations of Star Wars Department Stores, Inc., for the month of September. Corporate headquarters building lease $ 86,000 Cosmetics Department sales commissions--Stardust Store $ 5,300 Corporate legal office salaries $ 57,300 Store manager's salary - Stardust Store $ 11,700 Heating- Stardust Store $ 14,400 Cosmetics Department cost of sales--Stardust Store $ 32,400 Central warehouse lease cost $ 13,900 Store security -- Stardust Store $ 16,300 Cosmetics Department manager's salary--Stardust Store $ 4,260 The Stardust Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Stardust Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department

Answer 1

Answer: $41,960‬

Explanation:

The direct costs for the Cosmetics department will be those ones that are directly related to the sales of cosmetics and the running of the department and the cost of selling the units.

Direct Costs = Cosmetics Department sales commissions--Stardust Store + Cosmetics Department cost of sales--Stardust Store + Cosmetics Department manager's salary--Stardust Store

= 5,300 + 32,400 + 4,260

= $41,960‬