3. The following cost data pertain to the operations of Quinonez Department Stor

Question

3.

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.

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 NOT direct costs of the Northridge Store?

Corporate headquarters building lease $ 87,600 Cosmetics Department sales commissions--Northridge Store $ 5,230 Corporate legal office salaries $ 60,500 Store manager's salary-Northridge Store $ 17,200 Heating-Northridge Store $ 20,200 Cosmetics Department cost of sales--Northridge Store $ 37,400 Central warehouse lease cost $ 11,100 Store security-Northridge Store $ 18,900 Cosmetics Department manager's salary--Northridge Store $ 4,150

Explanation / Answer

SOLUTION

The amount of costs which is not direct costs is $159,200.

Amount ($) Corporate headquarters building lease 87,600 Corporate legal office salaries 60,500 Central warehouse lease cost 11,100 Total costs which are NOT direct 159,200

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