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3)Jordan Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 354,000 pounds

3)Jordan Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 354,000 pounds of raw materials, the company generates 75,000 pounds of B7, 170,000 pounds of K6, and 109,000 pounds of X9. A standard batch costs $4,248,000 to produce. The sales prices per pound are $10, $14, and $20 for B7, K6, and X9, respectively. Required

Allocate the joint product cost among the three final products using weight as the allocation base.

Allocate the joint product cost among the three final products using market value as the allocation base.

4)

ordan Industries produces two electronic decoders, P and Q. Decoder P is more sophisticated and requires more programming and testing than does Decoder Q. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity pools. Relevant information follows:

Activity Pools Cost Pool Total Cost Driver
Repair and maintenance on assembly machine $ 93,500 Number of units produced
Programming cost 103,630 Number of programming hours
Software inspections 7,680 Number of inspections
Product testing 9,100 Number of tests
Total overhead cost $ 213,910

Expected activity for each product follows:

Number of Units Number of Programming Hours Number of Inspections Number of Tests
Decoder P 25,000 2,000 185 1,200
Decoder Q 30,000 2,300 135 2,300
Total 55,000 4,300 320 3,500

Required

Compute the overhead rate for each activity pool.

Determine the overhead cost allocated to each product.

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