Question

The Bouffard Department Stores, Inc., is a national retail chain with its headquarters located in New York City. The following cost data pertains to the operation for the month of May Corporate legal office salaries $68,000 Shoe Department cost of sales-Brentwood Store $29,000 Corporate headquarters building lease $86,000 Store manager's salary-Brentwood Store $12,000 Shoe Department sales commissions-Brentwood Store $5,000 Store utilities-Brentwood Store $10,000 Shoe Department manager's salary-Brentwood Store $4,000 Central warehouse lease cost $7,000 Janitorial costs-Brentwood Store $10,000 The Brentwood Store is located in the Midwest region. It is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves the Brentwood Store as well as other of the company's stores in the Midwest region . What is the total amount of the costs listed above that are direct costs of the Brentwood Shoe Department

Answer 1

Answer:

$38,000

Explanation:

What is the total amount of the costs listed above that are direct costs of the Brentwood Shoe Department?

Direct costs of the Shoe Department = Shoe Department cost of sales + Shoe Department sales commissions + Shoe Department manager's salary

Direct costs of the Shoe Department = $29,000 + $5,000 + $4,000

Direct costs of the Shoe Department = $38,000

So therefore, the total amount of the costs that are direct costs of the Brentwood Shoe Department is $38,000