Houston Corporation has two products, Astros and Texans, with the following volume information:
Volume
Product Astros...............20,000 gal
Product Texans...............10,000 gal
Total............................30,000 gal
The joint cost to produce the two products is $120,000. What portion of the joint cost will each product be allocated if the allocation is performed by volume?
1. $100,000 and $0
2. $80,000 and $40,000
3. $40,000 and $80,000
4. $50,000 and $50,000