Managerial Accounting
15th Edition
ISBN: 9780078025631
Author: Ray H Garrison, Eric Noreen, Peter C. Brewer Professor
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, 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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Students have asked these similar questions
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.…
Problem 5
The accounting department of the Blanche Corporation provided the
following data for March, 2011.
Sales
P1,200,000
Marketing Expenses
Administrative Expenses
5% of Sales
1% of Sales
P400,000 to
2/3 of DL costs
a P210,000
March 1vi
P100,000
102,350
50,000itec 47,485
Purchases
Factory Overheado
Direct Labor
slin March 31
P82,500
117,135
Inventories:
Finished goods
Work in Process
Materials
Required:
1. Income Statement
2. Cost of Goods sold Statement
to
Chapter 2 Solutions
Managerial Accounting
Ch. 2.A - Prob. 1ECh. 2.A - Prob. 2ECh. 2.A - Prob. 3PCh. 2.A - Prob. 4PCh. 2.A - Prob. 5CCh. 2.B - Prob. 1ECh. 2.B - Prob. 2ECh. 2.B - Prob. 3PCh. 2.B - Prob. 4PCh. 2 - Prob. 1Q
Ch. 2 - Define the following: (a) direct materials, (b)...Ch. 2 - Explain the difference between a product cost and...Ch. 2 - Distinguish between (a) a variable cost, (b) a...Ch. 2 - Prob. 5QCh. 2 - Define the following terms: (a) cost behavior and...Ch. 2 - What is meant by an activity base when dealing...Ch. 2 - Managers often assume a strictly linear...Ch. 2 - Distinguish between discretionary fixed costs and...Ch. 2 - Does the concept of the relevant range apply to...Ch. 2 - What is the major disadvantage of the high-low...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - What is the difference between a traditional...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 1AECh. 2 - Prob. 2AECh. 2 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 2 - Prob. 1F15Ch. 2 - L012, L013, L014, L015, L016 Martinez Company’s...Ch. 2 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 2 - L01–1, L01–2, L01–3, L01–4, L01–5, L01–6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-1, L01-2, L01-3, L01-4, L01-5, L01-6
Martinez...Ch. 2 - L01-2, L01-3, L01-4, L01-5, L01-6 Martinez...Ch. 2 - EXERCISE 1—1 Identifying Direct and Indirect Costs...Ch. 2 - EXERCISE 1-2 Classifying Manufacturing Costs LO1-2...Ch. 2 - EXERCISE 1-3 Classifying Costs as Product or...Ch. 2 - EXERCISE 14 Fixed and Variable Cost Behavior LO14...Ch. 2 - Prob. 5ECh. 2 - EXERCISE 1—6 Traditional and Contribution Format...Ch. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - EXERCISE 1-12 Product and Period Cost Flows LO1–3...Ch. 2 - Prob. 13ECh. 2 - EXERCISE 2-14 High-Low Method: Predicting Cost...Ch. 2 - Prob. 15ECh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - PROBLEM 1-18 Direct and Indirect Costs; variable...Ch. 2 - Prob. 19PCh. 2 - PROBLEM 2-20 High-Low Method; Predicting Cost...Ch. 2 - PROBLEM 2-21 Cost Classification [L02-1, L02-3,...Ch. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26CCh. 2 - Prob. 27C
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