Question

Corporate headquarters building lease $77,000 Cosmetics Department sales commissions--Northridge Store $ 8.000 Corporate legal office salaries 559.000 Store manager's salary-Northridge Store $ 11,000 $ 10,000 $ 37,000 Heating Northridge Store Cosmetics Department cost of sales - Northridge Store Central warehouse lease cost Store security-Northridge Store $ 16,000 $ 12,000 Cosmetics Department manager's salary-- Northridge Store $ 4,000 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? O $72,000 $61,000 O $49.000 O $60,000 Onestion 21 Sunts

Answer 1

Direct costs are the costs directly incurred by cosmetics department of northridge store
Calculation of direct costs of cosmetics department is shown below:
Cosmetic department sales commission	$8,000
Cosmetic department cost of sales	$37,000
Cosmetic department manager's salary	$4,000
Direct costs	$49,000
Thus, direct costs of cosmetics department is $49,000