Hurley Processors Processes Clay into Two Joint Products, Molding Foam

question 87

Multiple Choice

Hurley Processors processes clay into two joint products, molding foam and craft blocks.When processed, each pound of clay yields 20 units of foam and 80 units of blocks.Foam sells for $2 per unit and blocks sells for $1.50 per unit.The total cost to process a 100-pound batch of clay is $35.If the relative sales value method is used to allocate the joint costs, what is the total amount that will be allocated to each batch?

• A)$55
• B)$35
• C)$160
• D)None of these answer choices are correct.

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Definitions:

Culture Shock

The experience of disorientation and stress that results from being in an unfamiliar cultural environment.

Long-Term Oriented

A focus or perspective that emphasizes planning and prioritizing future rewards over immediate outcomes.

High Power Distance

A term from cultural dimensions theory referring to the degree to which less powerful members of organizations within a country expect and accept that power is distributed unequally.

Uncertainty Avoidance

A cultural dimension that describes the extent to which societies are comfortable with ambiguity, uncertainty, and unstructured situations.