Question

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.Corporate headquarters building lease $ 78,300Cosmetics Department sales commissions--Northridge Store $ 5,2000Corporate legal office salaries $ 61,500Store manager's salary-Northridge Store $ 17,000Heating-Northridge Store $ 17,000Cosmetics Department cost of sales--Northridge Store $ 31,900Central warehouse lease cost $ 11,400Store security-Northridge Store $ 19,200Cosmetics Department manager's salary--Northridge Store $ 4,740The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge 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:

Total direct cost to the cosmetics department: 88.640‬

Explanation:

The direct cost will be those associate directly to the function and duties of the cosmetics department. The rest of the cost are indirect when our cost object is this department.

Cosmetics Department sales commissions--Northridge Store $ 52,000

Cosmetics Department cost of sales--Northridge Store $ 31,900

Cosmetics Department manager's salary--Northridge Store $ 4,740

Total direct cost to the cosmetics department: 88.640‬