3. Hampton Lumber Mills Inc. produces lumber from farmed trees. Raw logs are delivered to the company's plant where they are processed up to the split-off point into three products two-by-four lumber, two-by-six lumber and two-by-twelve lumber. Lumber is sold by the FBM (foot board measure), which is a common standard in the industry The joint costs of this process are $60,000, resulting in the following output Product Units Two-by-four Two-by-six Two-by-twelve 90,000 FBM 60,000 FBM 40,000 FBM Selling price per FBM $0.40 $0.60 $0.70 Each of these products can be further refined by going through a process that smooths the board by running it through a planer. While the output remains the same, this process increases the production cost and the sales value of the output as follow:s Product Two-by-four Two-by-six Two-by-twelve Further processing costs $20,000 $12,000 $13,000 Finished selling price per FBM $0.50 $0.82 $0.85 Which of the following statements regarding allocation of joint costs using the sales value at split-off method and the net realizable value (NRV) method is true, assuming that the wood is processed further? a) Joint costs allocated to the two-by-four product using the sales value at split-off method b) Joint costs allocated to the two-by-six product using the sales value at split-off method c) Joint costs allocated to the two-by-twelve product using the sales value at split-off d) Joint costs should be considered when making the decision to sell or process further would be $3,571 less than the costs allocated using the NRV method would be $5,227 less than the costs allocated using the NRV method method would be $1,656 less than the costs allocated using the NRV method