Question

The following cost data pertain to the operations of Rademaker Department Stores, Inc., for the month of March: Corporate headquarters building lease $ 94,000 Cosmetics Department sales commissions-Northridge Store $ 6,600 Corporate legal office salaries $ 58,600 Store manager's salary-Northridge Store $ 11,600 Heating-Northridge Store $ 12,600 Cosmetics Department cost of sales-Northridge Store $ 32,600 Central warehouse lease cost $ 7,600 Store security-Northridge Store $ 14,600 Cosmetics Department manager's salary-Northridge Store $ 5,600 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

Rademaker Department Stores, Inc.

Direct costs of the Cosmetics Department:

= $44,800

Step-by-step explanation:

a) Data and Calculations:

Cosmetics Department

Cosmetics Department Sales commissions - Northridge Store $ 6,600

Cosmetics Department cost of sales-Northridge Store $ 32,600

Cosmetics Department manager's salary-Northridge Store $ 5,600

Total direct costs for Cosmetics Department $44,800

b) The direct costs for the Cosmetics Department are those costs that are directly attributable to the department. They are not the shared costs arising from either the Northridge Store or from the Corporate headquarters.