Marin Products Produces Three Products — DBB-1, DBB-2, and DBB-3

question 1

Multiple Choice

Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Key information about Marin's production, sales, and costs follows.The amount of joint costs allocated to product DBB-2 using the physical measure method is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar) :

• A) $54,250.
• B) $757,800.
• C) $1,705,320.
• D) $49,200.
• E) $1,136,880.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time, typically measured on a yearly basis.

Low Inflation

A situation characterized by a slow rate of increase in the prices of goods and services, indicating stable economic conditions.

Variability

The extent to which data points in a data set differ from each other and from the mean or average, representing the dispersion within the data.

Relative Price Changes

Variations in the price of one good or service in relation to the prices of other goods and services.