Following data are available relating to a company for a certain month:

The company adopts sales basis and quantity basis for application of selling and distribution costs respectively.
Compute

(a) the territory-wise overhead recovery rates separately for selling and distribution costs and

(b) the amounts of selling and distribution costs chargeable to a consignment of 2,000 units of a product, sold in each territory at Rs. 4-50 per unit.

Transcribed Image Text:

Territory I II III Rs. Rs. Rs. Selling expenses 7,600 4,200 6,240 Distribution costs 4,000 1,800 2,000 Number of units sold 16,000 6,000 10,000 Sales 76,000 28,000 52,000