12 Jan A company produces a single product in three sizes
A company produces a single product in three sizes, A, B and C. Prepare a statement showing the selling and distribution expenses apportioned over three sizes on the basis indicated and express the total appropriated to each size as,I] Cost per unit sold II] A percentage of sales turnover and III] Cost per cubic meter of product sold.The expenses and basis of apportionment are as follows, Expenses Amount Rs. Basis of Apportionment Sales 10,000 Direct charge Sales commission 6,000 Sales turnover Sales office expenses 2,096 Number of orders Advertising-specific 22,000 Direct charge Advertising- general 5,000 Sales turnover Packing 3,000 Size of product Delivery expenses 4,000 Size of product Warehouse expenses 1,000 Size of product Credit collection expenses 1,296 Number of orders Total 54,392Data relating to the three sizes: Particulars Total Size A Size B Size C Number of salesmen, all paid same salary 10 4 5 1 Number of orders 1,600 700 800 100 % of specific advertising 100 30 40 30 Number of units sold 8,240 3,440 3,200 1,600 Sales turnover Rs. 2,00,000 Rs. 58,000 Rs. 80,000 Rs. 62,000 Capacity in cubic m. per unit 5 8 17
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