The following cost data pertain to the operations of Swestka Department Stores,

Question

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

Corporate headquarters building lease $81,600

Cosmetics Department sales commissions--Northridge Store $5,580

Corporate legal office salaries $62,700

Store manager's salary-Northridge Store $13,400

Heating-Northridge Store $13,200

Cosmetics Department cost of sales--Northridge Store $38,500

Central warehouse lease cost $13,600 Store security-Northridge Store $17,300

Cosmetics Department manager's salary--Northridge Store $4,870

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?

Multiple Choice $81,600 $48,950 $157,900 $48,970

Explanation / Answer

Following are the costs that are not direct costs of Northridge Store -

1. Corporate Headquarters Building Lease $81600

2. Corporate legal office salaries $62700

3. Central warehouse lease cost $13600

TOTAL $157900

THEREFORE, THE CORRECT ANSWER IS OPTION (C)

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