The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.

The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month of September.

Corporate headquarters building lease	$	83,200
Cosmetics Department sales commissions--Northridge Store	$	5,830
Corporate legal office salaries	$	66,800
Store manager's salary-Northridge Store	$	12,400
Heating-Northridge Store	$	16,700
Cosmetics Department cost of sales--Northridge Store	$	33,800
Central warehouse lease cost	$	6,500
Store security-Northridge Store	$	19,000
Cosmetics Department manager's salary--Northridge Store	$	4,940

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge 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 Cosmetics Department?

Multiple Choice

• $91,710
• $44,570

  Correct
• $39,630
• $33,800

Explanation

Direct costs of the Cosmetics Department = Cosmetics Department sales commissions + Cosmetics Department cost of sales + Cosmetics Department manager's salary = $5,830 + $33,800 + $4,940 = $44,570