Redwood Company sells craft kits and supplies to retail outlets and through its catalog. Some of the items are manufactured by Redwood, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, Redwood incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows:

Cost Category	Amount			Cost Driver
Sales commissions	$	972,000		Boxes of yarn sold to retail stores
Catalogs		425,400		Catalogs distributed
Cost of catalog sales		154,400		Skeins sold through catalog
Credit and collection		85,800		Number of retail orders
Total selling costs	$	1,637,600

The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows:

Order Size	Catalog Sales	Retail Sales
Small	110 skeins	110 boxes
Medium	1120 skeins	1120 boxes
Large	Over 20 skeins	Over 20 boxes

An analysis of the previous years records produced the following statistics.

	Order Size
	Small	Medium	Large	Total
Retail sales in boxes (12 skeins per box)	5,000	54,000	184,000	243,000
Catalog sales in skeins	85,000	58,000	50,000	193,000
Number of retail orders	545	2,715	4,540	7,800
Catalogs distributed	363,010	333,270	154,520	850,800

Required: 1. Prepare a schedule showing Redwood Companys total selling cost for each order size and the per-skein selling cost within each order size. (Round your intermediate calculations and unit cost per order to 2 decimal places.)

REDWOOD COMPANY

Computation of Selling Costs

By Order Size and Per Skein Within Each OrderSize

Order Size

Small Medium Large Total

Sales commissions

catalogs

Cost of catalog sales

Total cost for all orders of a given size

Units (skeins) sold

Unit cost per order of a given size