Data Pertaining to a Company's Joint Manufacturing Process for the Current

question 18

Multiple Choice

Data pertaining to a company's joint manufacturing process for the current period follows:
$\begin{array}{llr}&\text { Product } & \text { Product } \\&\text { A } & \text { B } \\ \text { Quantities produced } &200 \mathrm{lbs}&100 \mathrm{lbs}\\ \text { Processing cost after} &\\ \text {products are separated } &\$1,100&\$400\\ \text { Market value at point } &\\ \text {of separation } &\$8\mathrm{lb}&\$16\mathrm{lb}\\\end{array}$

What cost amount should be allocated to Product A for this period's $660 of joint costs on the basis of market value at the point of separation?

• A) $330.00
• B) $440.00
• C) $220.00
• D) $194.12
• E) $484.00

---

Definitions:

Increasing

A term indicating that something is growing or becoming larger in size, number, value, or quality.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive".

True Null Hypothesis

The hypothesis that there is no effect or no difference, and it truly reflects the reality in the population sampled.

Rejecting

In statistics, it often refers to the act of discarding the null hypothesis based on the evidence of a test.