Question

The following cost data pertain to the operations of Brentwood Department Stores, Inc., for the month of May:

Corporate legal office salaries $ 81,000

Shoe Department cost of sales-Brentwood Store $ 99,000

Corporate headquarters building lease $ 98,000

Store manager's salary-Brentwood Store $ 15,900

Shoe Department sales commissions-Brentwood Store $ 9,900

Store utilities-Brentwood Store $ 14,900

Shoe Department manager's salary-Brentwood Store $ 5,900

Central warehouse lease cost $ 12,900

Janitorial costs-Brentwood Store $ 12,900

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 direct costs of the Shoe Department?

A) $99,000

B) $108,900

C) $158,500

D) $114,800

Answer 1

D) $114,800

Shoe Department cost of sales–Brentwood Store	$99,000
Shoe Department sales commissions–Brentwood Store	$9,900
Shoe Department Manager‟s Salary–Brentwood Store	$5,900
Total direct costs	$114,800