Two Products, LB and NH, Emerge from a Joint Process

question 137

Multiple Choice

Two products, LB and NH, emerge from a joint process. Product LB has been allocated $30,800 of the total joint costs of $44,000. A total of 2,000 units of product LB are produced from the joint process. Product LB can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $14,000 and then sold for $15 per unit. If product LB is processed further and sold, what would be the effect on the overall profit of the company compared with sale in its unprocessed form directly after the split-off point?

• A)$16,000 more profit
• B)$20,800 more profit
• C)$40,800 less profit
• D)$10,000 less profit

Recognize the importance of continuous evaluation and adaptation of human resource strategies in response to changing internal and external factors.

Understand the impacts of economic forces on organizational strategies and operations.

Acknowledge the diverse workforce characteristics of different generations and their implications for human resource management.

Understand the basics of product cost calculation including direct materials, direct labor, and overhead costs.

---

Definitions:

Mental Simulation

The cognitive process of imagining or visualizing hypothetical scenarios or outcomes in one’s mind.

Home Theater System

A collection of electronic components designed to recreate the experience of watching a movie in a theater at home, typically including a large screen, speakers, and various media players.

Career Interest

Individuals' preferences and inclinations towards specific professions or occupational areas.

Biologist

A scientist who studies living organisms and their interactions with the environment.