The following cost data pertain to the operations of Mancia Department Stores, Inc., for the month of February. 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? Solution Direct costs are the costs which is directly incurred in relation with the particular depatment. Direct Cost of Shoe Department = Shoe department cost of sales + Shoe department sales commissions + Shoe department manager\'s salary = 89000+8900+4900 = $102800 .

1. The following cost data pertain to the operations of Mancia Department Stores, Inc., for the
month of February.
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?
Corporate legal office salaries $71,000
Shoe department cost of salesBrentwood Store $89,000
Corporate headquarters building lease $88,000
Store manager's salaryBrentwood Store $14,900
Shoe department sales commissionsBrentwood Store $8,900
Store utilities-Brentwood Store $13,900
Shoe department manager's salaryBrentwood Store $4,900
Central warehouse lease cost $11,900
Janitorial costsBrentwood Store $11,900
Solution
Direct costs are the costs which is directly incurred in relation with the particular depatment.
Direct Cost of Shoe Department = Shoe department cost of sales + Shoe department sales
commissions + Shoe department manager's salary
= 89000+8900+4900 = $102800