Use the Information Below to Answer the Following Question(s)

question 76

Multiple Choice

Use the information below to answer the following question(s) .Cranbrook Chemical Ltd.manufactures two industrial compounds.In the month of May, 15,000 litres of direct material costing $160,000 were processed at a cost of $400,000.The joint process yielded 16,000 containers of a compound known as Jarlon and 4,000 containers of a compound known as Kharton.The respective selling prices of Jarlon and Kharton are $38 and $58.Both products may be processed further.Jarlon may be processed into Jaxton at an incremental cost of $8 per jar of the final product while Kharton may be processed into Kraxton at an additional cost of $32 per jar of the final product.The volume of jars of the final product are: 12,000 and 3,000 for Jaxton and Kraxton respectively.The selling price of Jaxton is $48 per jar.The selling price of Kraxton is $102 per jar.
-Using the physical measures method, the joint costs allocated to Kharton would be

• A)$320,000.
• B)$112,000.
• C)$154,672.
• D)$448,000.
• E)$110,480.

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Definitions:

Out-Group Homogeneity Effect

The Out-Group Homogeneity Effect is a psychological phenomenon where individuals perceive members of an out-group as more similar to each other than they are to members of their in-group.

Fundamental Attribution Error

The tendency for observers to overestimate personality-based explanations for behaviors observed in others while underestimating situational explanations.

Systematic Judgments

Decisions or evaluations made based on a thorough analysis and following a specific method or protocol.

Confirmation Bias

A bias towards identifying, comprehending, selecting, and reminiscing information that supports and validates one's existing beliefs or assumptions.