Hurricane Lamp Oil Company produces both A-1 Fancy and B Grade Oil. There are approximately in joint costs that may allocate using the relative sales value at splitoff or the net realizable value approach. At splitoff, A-1 sells for while B grade sells for . After an additional investment of after splitoff, for B grade and for A-1, both the products sell for . What is the difference in allocated costs for the A-1 product assuming applications of the net realizable value and the sales value at splitoff approach? (Round intermediary calculations to four decimal places, X.XXXX, and your final answer to the nearest whole dollar.)

1. A-1 Fancy has more joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach.

2. A-1 Fancy has less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach.

3. A-1 Fancy has more joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach.

4. A-1 Fancy has less joint costs allocated to it under the net realizable value approach than the sales value at splitoff approach.