XYZ Ltd, a manufacturing company, having an extensive marketing network throughout the country, sells its products through four zonal offices, viz. A, B, C and D. The budgeted expenditure for the year is given below:
| Sales manager’s salary Don't use plagiarized sources. Get Your Custom Essay on based on above details compute zone wise selling overheads as a percentage to sales 618493 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | 1,20,000 |
| Expenses relating to sales | 80,000 |
| manager’s office | |
| Travelling salesmen’s salaries | 3,20,000 |
| Travelling expenses | 36,000 |
| Advertisements | 30,000 |
| Godown Rent: | |
| Zone A – Rs. 15,000 | |
| Zone B – Rs. 25,200 | |
| Zone C – Rs. 9,800 | |
| Zone D – Rs. 18,000 | 68,000 |
| Insurance on inventories | 20,000 |
| Commission on sales at 5% on sales | 6,00,000 |
The Following Particulars are Available:
| Zone | Sales (Rs. Lakh) | Number of Salesmen | Total Mileage Covered | Allocation of Advertisement | Avrage Stock Held (Rs. Lakh) |
| A | 36 | 5 | 6,000 | 30% | 6 |
| B | 48 | 6 | 14,000 | 30% | 8 |
| C | 16 | 2 | 4,500 | 20% | 4 |
| D | 20 | 3 | 5,500 | 20% | 2 |
Based on above details, compute zone-wise selling overheads as a percentage to sales
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