The following cost data pertain to the operations of Bouffard Department Stores,
ID: 2596560 • Letter: T
Question
The following cost data pertain to the operations of Bouffard Department Stores, Inc., for the month of May.
Corporate legal office salaries
$68,000
Shoe Department cost of sales—Brentwood Store
$29,000
Corporate headquarters building lease
$86,000
Store manager’s salary---Brentwood Store
$12,000
Shoe Department sales commissions—Brentwood Store
$5,000
Store utilities—Brentwood Store
$10,000
Shoe Department manager’s salary—Brentwood Store
$4,000
Central warehouse lease cost
$7,000
Janitorial costs—Brentwood Store
$10,000
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.
What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?
$161,000
$86,000
$32,000
$38,000
Corporate legal office salaries
$68,000
Shoe Department cost of sales—Brentwood Store
$29,000
Corporate headquarters building lease
$86,000
Store manager’s salary---Brentwood Store
$12,000
Shoe Department sales commissions—Brentwood Store
$5,000
Store utilities—Brentwood Store
$10,000
Shoe Department manager’s salary—Brentwood Store
$4,000
Central warehouse lease cost
$7,000
Janitorial costs—Brentwood Store
$10,000
Explanation / Answer
Costs that are NOT direct costs of the Brentwood
Corporate legal office salaries $68,000 Central warehouse lease cost $7,000 Corporate headquarters building lease $86,000 Total costs not a Direct costs $161,000 (option a)Related Questions
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