Costs that are not direct costs of the Northridge Store = Corporate headquarters building lease + Corporate legal office salaries + Central warehouse lease cost = $80,000 + $75,000 + $17,000 = $172,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-01 Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs. The following cost data pertain to the operations of Bouffard Department Stores, Inc., for the month of May. 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. 101. What is the total amount of the costs listed above that are direct costs of the Shoe Department? Direct costs of the Shoe Department = Shoe Department cost of sales + Shoe Department sales commissions + Shoe Department manager's salary = $29,000 + $5,000 + $4,000 = $38,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-01 Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs. 102. What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?
Costs that are not direct costs of the Northridge Store = Corporate headquarters building lease + Corporate legal office salaries + Central warehouse lease cost = $80,000 + $75,000 + $17,000 = $172,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-01 Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs. The following cost data pertain to the operations of Bouffard Department Stores, Inc., for the month of May. 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. 101. What is the total amount of the costs listed above that are direct costs of the Shoe Department? Direct costs of the Shoe Department = Shoe Department cost of sales + Shoe Department sales commissions + Shoe Department manager's salary = $29,000 + $5,000 + $4,000 = $38,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-01 Understand cost classifications used for assigning costs to cost objects: direct costs and indirect costs. 102. What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?
TBChap002.docx