Differential Chemical produced 12,000 gallons of Preon and 16,000 gallons of Paron. Joint costs incurred in producing the two products totaled $6,200. At the split-off point, Preon has a market value of $8.00 per gallon and Paron $4.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.

• $3,100.
• $1,240.
• $2,480.
• $5,705.
• $3,720.