Question

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March. Corporate headquarters building lease Cosmetics Department sales commissions- Northridge Store Corporate legal office salaries Store manager's salary-Northridge Store Heating-Northridge Store Cosmetics Department cost of sales--Northridge Store Central warehouse lease cost Store security-Northridge Store Cosmetics Department manager's salary Northridge Store $79,700 $5,180 $61,600 $16,900 $16,800 $33,500 $7,400 $14,200 $4,080 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

The total amount of the costs listed above that are direct costs of the Cosmetics Department is $42,760

Step-by-step explanation:

The computation of the direct cost is shown below:

= Cosmetics Department sales commissions + Cosmetics Department cost of sales + Cosmetics Department manager's salary

= $5,180 + $33,500 + $4,080

= $42,760

The other items which are given in the question are not relevant to the Cosmetics Department. So, these costs are ignored , and hence not considered in the computation part.