50) Below is a list of expenses (direct and indirect). You are to determine the total direct cost for departments A and B.


Salary Expense$ 80,000

Depreciation Expense –


Depreciation Expense –


Heating Expense1,800

Lighting Expense2,400

Cleaning & Maintenance Expense900


Department                              [A]                  [B]   

Cost of Goods Sold$100,000$300,000


Value of Equipment in each area$ 8,000$ 12,000

Square footage of use200 sq. ft.400 sq. ft.


Direct cost for department A $ ________ B $ ________


Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.


51) Electricity for the stove in a restaurant.________


52) Paint for the restaurant dining room.________


53) Rent paid for the building.________

54) Wages paid to the restaurant wait staff.________


55) Electricity for the general lighting in a store._______


56) Paint sold by the hobby department.________


57) General employee insurance.________


58) Rent paid for the freezers in the frozen foods department of a food store.________


59) Insurance paid on employees working in high risk areas of a machine shop.________

60) Wages paid to the mechanics of an automobile repair shop.________



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