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The following cost data pertain to the questions of lefthand department stores, Inc., for the month of December. Corporate Legal Office Salaries $74,000 Shoe Department cost of sales, Brentwood

The following cost data pertain to the questions of lefthand department stores, Inc., for the month of December.

Corporate Legal Office Salaries $74,000
Shoe Department cost of sales, Brentwood store $35,000
Corporate Headquarters Building Base $78,000
Store Manager's salary-Brentwood store $14,000
Shoe Department sales commissions-Brentwood store $5,000
Store Utilities-Brentwood Store $14,000
Shoe Department Manager's salary-Brentwood store $3,000
Central Warehouse lease cost $10,000
Janitorial Costs-Brentwood Store $8,000

The Brentwood store is just one of many stores owned and operated by the company. The Show 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. $43,000
B. $36,000
C. $162,000
D. $78,000

I'm getting C because I added The corporate legal office salaries, corporate headquarters building base, and central warehouse lease cost because those costs really don't apply to the Brentwood store which means they are not direct costs of the Brentwood store, right? If it doesn't deal directly with this store's cost, then it's not a direct cost, right? Help please! Just want to make sure this is right. Thanks in advance!

Aug 17 2021 View more View Less

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