The following cost data pertain to the operations of Lefthand Department Stores,
ID: 2381683 • Letter: T
Question
The following cost data pertain to the operations of Lefthand Department Stores, Inc., for the month of December.
$74,000
$35,000
$78,000
$14,000
$5,000
$14,000
$3,000
$10,000
$8,000
The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.
$74,000
Shoe Department cost of sales,Brentwood Store
$35,000
Corporate headquarters building lease$78,000
Store manager's salaryBrentwood Store
$14,000
Shoe Department sales commissions,Brentwood Store
$5,000
Store utilities,Brentwood Store
$14,000
Shoe Department manager's salary,Brentwood Store
$3,000
Central warehouse lease cost$10,000
Janitorial costs, Brentwood Store$8,000
Explanation / Answer
4. What is the total amount of the costs listed above that are direct costs of the Shoe Department?
A. $43,000
B. $35,000
C. $79,000
D. $40,000
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