Question

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September. Corporate headquarters building lease $ 80,100 Cosmetics Department sales commissions--Northridge Store $ 5,680 Corporate legal office salaries $ 61,900 Store manager's salary-Northridge Store $ 19,200 Heating-Northridge Store $ 13,100 Cosmetics Department cost of sales--Northridge Store $ 38,700 Central warehouse lease cost $ 8,600 Store security-Northridge Store $ 21,100 Cosmetics Department manager's salary--Northridge Store $ 4,460 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? $83,000 $94,000 $90,000 $127,000

Answer 1

Direct cost for Cosmetics Deparment $48,840‬

Step-by-step explanation:

Corporate headquarters building lease $ 80,100

Cosmetics Department sales commissions--Northridge Store $ 5,680

Corporate legal office salaries $ 61,900

Store manager's salary-Northridge Store $ 19,200

Heating-Northridge Store $ 13,100

Cosmetics Department cost of sales--Northridge Store $ 38,700

Central warehouse lease cost $ 8,600

Store security-Northridge Store $ 21,100

Cosmetics Department manager's salary--Northridge Store $ 4,460

As the Cosmetics department is the object cost we should only consider direct cost those generated directly from the Cosmetics Deparment.

38,700 + 5,680 + 4,460 = 48,840‬