Differential Chemical produced 12,000 gallons of Preon and 32,000 gallons of Paron. Joint costs incurred in producing the two products totaled $7,000. At the split-off point, Preon has a market value of $8.00 per gallon and Paron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used. $1,400. $4,200. $2,800. $1,750. $4,675.