The following cost data pertain to the operations of Ladwig Department Stores, Inc., for the month of December. 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) $66,000
B) $74,000
C) $106,000
D) $71,000

Question

The following cost data pertain to the operations of Ladwig Department Stores, Inc., for the month of December.  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) $66,000 
B) $74,000 
C) $106,000 
D) $71,000

Quizplus · Accepted Answer

Direct costs of the Shoe Department = Shoe Department cost of sales + Shoe Department sales commissions + Shoe Department manager's salary = $66,000 + $5,000 + $3,000 = $74,000

The Following Cost Data Pertain to the Operations of Ladwig