Carina's Candlewax Company produces two grades of wax for industrial candlemaking: A grade and B grade. Carina's incurs $8,598 in processing costs prior to the split-off point. If sold at the splitoff point, a batch of A grade wax sells for $30,098 while B grade sells for $17,196. After an additional investment of $8,926 after the splitoff, $6,687 for A grade and $2,239 for B grade, each of the grades of wax sells for $42,137.

1. Assume Carina's uses the sales-value at the split-off point to allocate joint costs.

1a. How much are the joint costs allocated to A grade wax?

$5,472

1b. How much are the joint costs allocated to B grade wax?

$3,126

2. Assume instead that Carina's uses the net realizable value method to allocate joint costs.

2a. How much are the joint costs allocated to A grade wax?

$4,045

2b. How much are the joint costs allocated to B grade wax?

$4,553