28 The tollowing cost data pertain to the operations of Walsh Department Stores,

Question

28 The tollowing cost data pertain to the operations of Walsh Department Stores, Inc., for the month of September ut of 3 Corporate headquarters building lease Cosmetics Department sales commissions-Northridge Store Corporate legal office salaries Store managers salary-Northridge Store Heating-Northridge Store Cosmetics Department cost of sales-Northridge Store Central warehouse lease cost Store security-Northridge Store Cosmetics Department managers salary-Northridge Store 77,000 $ 4,000 $ 59,000 $ 11,000 S 10,000 S 37,000 S 16,000 S 12,000 S 4,000 The Northridge Store is just ane 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'a stores What is the tolal amount of the costs listed above that are direct costs of the Costmetics Department? Select one $45,000 b 541,000 Oc$37,000 O d 78.000 n29 Walsh orporation uses·ob order costing system with a sr le plant de pred ter i ed oseteed rate based on dret a orh us t e company based its predetermined ove head of 53.70 per direct labor-hour, and 50,000 direct isbor-hours. The company recently compieted Jab M300 which required 150 direct lsbor-hours. te trte s ran y based its predetermined overhead rate for the current year on total fxed menufacturing overh

Explanation / Answer

Solution: Option(a) is correct.

Explanation: Calculation of Direct costs:

Particulars Amount ($) Cosmetics Department sales commission 4,000 Cosmetics Department cost of sales 37,000 CostmetCo Department manager's salary 4,000 Total direct costs 45,000

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