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The following cost data pertain to the operations of Rademaker Department Stores, Inc
The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March.
Corporate headquarters building lease S80,000 Cosmetics Department sales commissions-Northridge Store $7,000 Corporate legal office salaries 575,000 Store manager's salary-Northridge Store S11,000 Heating-Northridge Store S11,000 Cosmetics Department cost of sales-Northridge Store 583,000 Central warehouse lease cost S17,000 Store security-Northridge Store S11,000 Cosmetics Department manager's salary-Northridge Store $4,000
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? A. S94,000 B. S90,000 C. £127,000 D. $83,000
Expert Solution
Computation of Total Amount of Direct Costs of the Cosmetics Department:
Total Amount of Direct Costs = Sales Commissions + Cost of Sales + Salary of Manager
= $7,000+$83,000+$4,000
Total Amount of Direct Costs = $94,000
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