Answer the Following Questions Using the Information Below:
the Alfarm

question 47

Multiple Choice

Answer the following questions using the information below:
The Alfarm Corporation processes raw milk up to the splitoff point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February:
$\begin{array}{lll}\text { Direct materials processed: } && 750,000 \text { gallons }(727,500 \text { gallons of good product) } \\\text { Production: } & \text { Cream } & 442,500 \text { gallons } \\& \text { Liquid skim } & 285,000 \text { gallons } \\\text { Sales: } & \text { Cream } & 421,500 \text { at } \$ 110 \text { per gallon } \\& \text { Liquid skm } & 273,000 \text { at } \$ 100 \text { per gallon }\end{array}$ The cost of purchasing 750,000 gallons of direct materials and processing it up to the splitoff point to yield a total of 727,500 gallons of good product was $2,280,000.
-What are the physical-volume proportions to allocate joint costs for cream and liquid skim,respectively?

• A) 59.00% and 41.00%
• B) 60.82% and 39.18%
• C) 50.00% and 50.00%
• D) 59.79% and 40.21%

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Definitions:

Motivator-Hygiene Theory

The Motivator-Hygiene Theory, proposed by Frederick Herzberg, suggests that job satisfaction and dissatisfaction arise from two different sets of factors: motivators, which can create job satisfaction, and hygiene factors, which can prevent dissatisfaction but not necessarily create satisfaction.

Job Content

The specific tasks, responsibilities, and duties that make up a particular job.

Working Conditions

The environment in which an individual works, including aspects such as safety, amenities, workload, and physical conditions.

Motivator-Hygiene Theory

A theory of job satisfaction proposed by Frederick Herzberg, arguing that factors leading to job satisfaction (motivators) are different from those leading to dissatisfaction (hygiene factors).