Out of the overheads given, the following is an example of distribution overheads.

Advertisement expenses

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Packing expenses

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Commission of selling agents

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None

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Solution

The correct option is C Packing expenses
Packing material is the cost of material which is incurred to bring the product in salable condition.
Its an overhead and to be classified as selling and distribution overheads.

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Similar questions

Find the selling price, if : (i) C.P. = Rs. 352; overheads = Rs. 28 and profit = 20%. (ii) C.P. = Rs. 576; overheads = Rs. 44 and loss = 16%.

Rs.

= Rs. 352

= Rs. 28

= 20 %

=

576

=

44

= 16 %

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