MANAGERIAL ACCOUNTING (ACCESS) >C<
22nd Edition
ISBN: 9781307839319
Author: Garrison
Publisher: MCG/CREATE
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Textbook Question
Chapter 1, Problem 18P
PROBLEM 1-18 Direct and Indirect Costs; variable Costs LO1−1, LO1−4
The following cost data pertain to the operations of Montgomery Department Stores, Inc. for the month of July.
Corporate legal office salaries | $56,000 |
Apparel Department cost of sales—Evendale Store | $90,000 |
Corporate headquarters building lease | $48,000 |
Store manager’s salary—Evendale Store | $12,000 |
Apparel Department sales commission—Evendale Store | $7,000 |
Store utilities—Evendale Store | $11,000 |
Apparel Department manager’s salary—Evendale Store | $8,000 |
Central warehouse lease cost | $15,000 |
Janitorial costs—Evendale Store | $9,000 |
The Evendale Store is 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:
- What is the total amount of the costs listed above that are direct costs of the Apparel Department?
- What is the total amount of the costs listed above that are direct costs of the Evendale Store?
- What is the total amount of the Apparel Department’s direct costs that are also variable costs with respect to total departmental sales?
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Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4]
The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July.
Corporate legal office salaries
Apparel Department cost of sales-Evendale Store
Corporate headquarters building lease
$ 78,600
$ 109,500
$ 58,200
$ 18,600
Store manager's salary-Evendale Store
Apparel Department sales commission-Evendale Store
Store utilities-Evendale Store
Apparel Department manager's salary-Evendale Store
Central warehouse lease cost
Janitorial costs-Evendale Store
$ 10,700
$ 16,100
$ 8,150
$ 20,400
$ 13,000
The Evendale Store is 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:
1. What is the total amount of the costs listed above that are direct costs of the Apparel Department?
2. What is the total amount of the costs listed…
Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4]
The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of
July.
Corporate legal office salaries.
Apparel Department cost of sales-Evendale Store
Corporate headquarters building lease
Store manager's salary-Evendale Store
Apparel Department sales commission-Evendale Store
Store utilities-Evendale Store
Apparel Department manager's salary-Evendale Store
Central warehouse lease cost
Janitorial costs-Evendale Store
$
$
$
$
$
1. Total direct costs for the Apparel Department
2 Total direct costs for the Evendale Store
3. Total direct costs for the Apparel Department that are also variable costs
$
64,800
101,500
75,600
15,000
8,450
14,900
8,550
20,900
11,000
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.…
ll.2
Chapter 1 Solutions
MANAGERIAL ACCOUNTING (ACCESS) >C<
Ch. 1 - Prob. 1QCh. 1 - Define the following: (a) direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - Prob. 5QCh. 1 - Define the following terms: (a) cost behavior and...Ch. 1 - What is meant by an activity base when dealing...Ch. 1 - Prob. 8QCh. 1 - Distinguish between discretionary fixed costs and...Ch. 1 - Does the concept of the relevant range apply to...
Ch. 1 - What is the difference between a traditional...Ch. 1 - Prob. 12QCh. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 1AECh. 1 - Prob. 2AECh. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L012, L013, L014, L015, L016 Martinez Company’s...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 1 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 1 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 1 - EXERCISE 1—1 Identifying Direct and Indirect Costs...Ch. 1 - EXERCISE 1-2 Classifying Manufacturing Costs LO1-2...Ch. 1 - EXERCISE 1-3 Classifying Costs as Product or...Ch. 1 - EXERCISE 14 Fixed and Variable Cost Behavior LO14...Ch. 1 - Prob. 5ECh. 1 - EXERCISE 1—6 Traditional and Contribution Format...Ch. 1 - Prob. 7ECh. 1 - EXERCISE 18 Product Costs and Period Costs;...Ch. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - EXERCISE 1—11 Cost Behavior; Contribution Format...Ch. 1 - EXERCISE 1-12 Product and Period Cost Flows LO1–3...Ch. 1 - Prob. 13ECh. 1 - EXERCISE 1-14 Cost Classification 1O1–2, LO1–3,...Ch. 1 - Prob. 15ECh. 1 - EXERCISE 1–16 Cost Classifications for Decision...Ch. 1 - EXERCISE 1-17 Classifying Variable and Fixed Costs...Ch. 1 - PROBLEM 1-18 Direct and Indirect Costs; variable...Ch. 1 - PROBLEM 1-19 Traditional and Contribution Format...Ch. 1 - PROBLEM 120 Variable and Fixed Costs; Subtleties...Ch. 1 - Prob. 21PCh. 1 - Prob. 22PCh. 1 - PROBLEM 123 Cost Classification LO11, LO13, LO14...Ch. 1 - PROBLEM 1-24 Different Cost Classifications for...Ch. 1 - Prob. 25PCh. 1 - CASE 1-26 Cost Classification and Cost Behavior...Ch. 1 - Prob. 27C
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