The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.
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 direct costs of the Cosmetics Department?
A)$74,000
B)$36,000
C)$31,000
D)$40,000

Question

The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.  
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 direct costs of the Cosmetics Department?
A)$74,000 
B)$36,000 
C)$31,000 
D)$40,000

Quizplus · Accepted Answer

Direct costs of the Cosmetics Department = Cosmetics Department sales commissions + Cosmetics Department cost of sales + Cosmetics Department manager's salary
= $5,000 + $31,000 + $4,000
= $40,000

The Following Cost Data Pertain to the Operations of Swestka