Old Virginia Meat Processing Plant processes hogs to produce three joint products: bacon, sausage, and pork chops. The company incurs common processing costs of $100,000 per batch. Each batch yields 15,000 pounds of bacon, 18,000 pounds of sausage, and 7,000 pounds of pork chops. Pork chops can be sold for $3.00 per pound. The bacon and sausage products are sold at the split-off point for $3.25 per pound and $3.50 per pound, respectively.

A. Allocate Old Virginia's joint costs using pounds produced as the allocation base.

B. Assume that the pork chops are processed further after the split-off point and incur an additional cost of $4,000 on top of the allocated joint costs. What would be the total cost assigned to pork chops?

a. Allocate Old Virginia's joint costs using pounds produced as the allocation base