Enfield Lumber Inc. (Enfield) purchases logs from independent timber contractors and processes the logs into three types of lumber products. These products are the result of a joint sawmill process that involves removal of bark from the logs, cutting the logs into a workable size, and then cutting the individual products from the logs EFF(Click the icon to view the joint cost information.) (Click the icon to view the per-unit information.) The studs are sold as rough-cut lumber after emerging from the sawmill operation without further processing by Enfield. Also, the posts require no further processing beyond the splitoff point. The decorative pieces must be planed and further sized after emerging from the sawmill. This additional processing costs $105,000 per month and normally results in a loss of 10% of the units entering the process. Without this planing and sizing process, there is still an active intermediate market for the unfinished decorative pieces in which the selling price averages $70 per unit. Required Requirement 1a. Allocate the joint processing costs of $1,000,000 to the three products using the sales value at splitoff method. (Round the weightings to four decimal places.) Studs Decorative pieces Posts Total Monthly unit output Selling price per unit Sales value of total production at splitoff Weighting Joint costs allocated Requirement 1b. Next allocate the joint processing costs of $1,000,000 to the three products using the physical-measure method (volume in units). (Round the weightings to four decimal places.) Studs Decorative pieces Posts Total Physical measure of total production Weighting Joint costs allocatedRequirement 1c. Finally: allocate thejpint processing costs of $1 000,000 to the three products using the NRV method. (Round the weightings to four decimal places.) Studs Decorative pieces Posts Total Units available for sale Fully processed selling price per unit Net realizable value at splitoff Weighting Joint costs allocated Requirement 2. Prepare an analysis that compares processing the decorative pieces further, as is current practice, with selling them as a rough-cut product immediately at splitoff. (Use parentheses or a minus sign for decreases in contribution.) Units Dollars Monthly unit output Less: Normal further processing shrinkage Units available for sale Final sales value Less: Sales value at splitoff Incremental revenue Less: Further processing costs Increase/(decrease) in contribution from further processingRequirement 3. Assume the company announced that in six months it will sell the unfinished decorative pieces at splitoff due to increasing competitive pressure. Identify at least three types of likely behaviour that will be demonstrated by the skilled labour in the planing-and-sizing process as a result of this announcement. Include in your discussion how this behaviour could be influenced by management. Behaviour that may be demonstrated by the skilled labour in the planing-and-sizing process include the following: Management actions that could improve this behaviour include the following: Improve communication by giving the workers: The company can offer incentive bonuses to and align rewards with goals. The company could job relocation and internal job transfers.X Joint cost information - X Per-unit information The joint process results in the following costs of products for a typical month: Product yields and average sales values on a per-unit basis from the joint process are as follows: Direct materials (rough timber logs) $ 485,000 Monthly Output of Materials at Fully Processed Debarking (labour and overhead) 55,000 Product Splitoff Point Selling Price Sizing (labour and overhead) 205,000 Studs 80,000 units $ 10 Product cutting (labour and overhead) 255,000 Decorative pieces 5,000 units 95 $ 1,000,000 Posts 24,000 units 18 Total joint costs Print Done Print Done