Reference no: EM132596206

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July.

Corporate legal office salaries $60,900

Apparel Department cost of sales-Evendale Store $117,300

Corporate headquarters building lease $53,400

Store manager's salary-Evendale Store $12,400

Apparel Department sales commission-Evendale Store $9,850

Store utilities-Evendale Store $18,800

Apparel Department manager's salary-Evendale Store $10,650

Central warehouse lease cost $16,000

Janitorial costs-Evendale Store $9,700

The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company's stores.

Required:

Question 1. What is the total amount of the costs listed above that are direct costs of the Apparel Department?

Question 2. What is the total amount of the costs listed above that are direct costs of the Evendale Store?

Question 3. What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to total departmental sales?