Question

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September. Corporate headquarters building lease $ 86,000 Cosmetics Department sales commissions--Northridge Store $ 5,300 Corporate legal office salaries $ 57,300 Store manager's salary-Northridge Store $ 11,700 Heating-Northridge Store $ 14,400 Cosmetics Department cost of sales--Northridge Store $ 32,400 Central warehouse lease cost $ 13,900 Store security-Northridge Store $ 16,300 Cosmetics Department manager's salary--Northridge Store $ 4,260 The 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:

$41,960

Explanation:

Direct costs are costs that are specific to a certain product, service or in this case, department or business unit. They are not shared with other products, services or business units.

The direct costs allocated to the Cosmetics Department are:

• Cosmetics Department sales commissions--Northridge Store $5,300
• Cosmetics Department cost of sales--Northridge Store $32,400
• Cosmetics Department manager's salary--Northridge Store $4,260
• total $41,960