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 NOT direct costs of the Brentwood Store?
A) $74,000
B) $32,000
C) $157,000
D) $86,000

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 NOT direct costs of the Brentwood Store?
A) $74,000 
B) $32,000 
C) $157,000 
D) $86,000

Quizplus · Accepted Answer

Costs that are not direct costs of the Brentwood Store = Corporate legal office salaries + Corporate headquarters building lease + Central warehouse lease cost = $68,000 + $86,000 + $3,000 = $157,000

The Following Cost Data Pertain to the Operations of Ladwig