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The following cost data pertain to the operations of Ladwig Department Stores,
Incorporated, for the month of December.
Corporate legal office salaries
Shoe Department cost of sales-Brentwood Store
Corporate headquarters building lease
Store manager's salary-Brentwood Store
Shoe Department sales commissions-Brentwood Store
Store utilities-Brentwood Store
Shoe Department manager's salary-Brentwood Store
Central warehouse lease cost
Janitorial costs-Brentwood Store
68,000
66,000
861000
10,000
5,000
11,000
3,000
3,000
11,000
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 NOT direct costs of the Brentwood Stores?

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Tundexi

The total amount of the costs listed above that are NOT direct costs of the Brentwood Stores equals to $157,000.

What are direct cost?

This refers to the price that can be directly tied to the production of specific goods or services.

The non- direct costs of the Brentwood Store includes:

  • Corporate legal office salaries
  • Corporate headquarters building lease
  • Central warehouse lease cost

Hence, the Costs that are not direct costs of the Brentwood Store = Corporate legal office salaries + Corporate headquarters building lease + Central warehouse lease cost

= $68,000 + $86,000 + $3,000

= $157,000

Therefore, the total amount of the costs listed above that are NOT direct costs of the Brentwood Stores equals to $157,000.

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