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Local/territory costs are apportioned to products on the basis of their sales value. Local cost of territory X 32,000) has been apportioned in the ratio

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Local/territory costs are apportioned to products on the basis of their sales value. Local cost of territory X 32,000) has been apportioned in the ratio of 5:3. i.e. Product A 32,000 X 5/8) - 20,000 Product B (32,000 X 3/8) - 12,000 Local cost of territory Y45,000) is apportioned in the ratio of 2:7; Product A (245,000 X 2/9) - 10,000 Product (345,000 (7/9) - 35,000 . Costs of Territory 2 (342,000) are apportioned in the ratio of 8:4: Product B (242,000 X 8/12) - 28,000 Product C (242.000 X 4/12) - 14,000 j3 358,000/229,00,000) X 87,00.000 - 14,000 Product A) (58,000/29,00,000) 11,00,000 - 22,000 (Product B) (58,000/29,00,000) X 211,00,000 - 22,000 (Product C) 85,800 common costs are apportioned in territories X, Y, Z in proportion of sales made in each of these territories, i.e. (8:9:12) 58,000 29,00,000) X 8,00,000 - 316,000 (Territory XO (358,00029,00,000) X 89,00,000 - 718,000 Territory Y) (858,000/29,00,000) X 212,00,000 - $24,000 Territory 2) P.11.2 XYZ Ltd., having an extensive marketing network throughout the country, sells its products throughout four zonal sales offices, namely, A, B, C and D. The budgeted expenditure for the year are given below: Sales manager's salary 212,00,000 Expenses relating to sales manager's office 8,00,000 Travelling salesmen's salaries 32,00,000 Traveling expenses 3,60,000 Advertisements 3,00,000 Godown rent: Zone 21,50,000 2,52,000 98,000 1,80,000 6,80,000 Insurance on inventories 2,00,000 Commision on sales@5% on sales 60,00,000 The following further particulars are also available: Sales Number of Total mileage Allocation of Average stock in Rlakh) salesmen covered advertisement (%) tlakh 360 5 6,000 14,000 30 4,500 5,500 Based on the above details, compute zone-wise selling overheads, as a percentage to sales. Oo Zone 30 480 160 200 6 2 3 60 80 40 20 20 20 D

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