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Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial
Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $480,000 and results in 78,000 units of MSB and 108,000 units of CBL. Each MSB sells for $4, and each unit of CBL sells for $8. Problem 17-27 Part 1 Required: 1. Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) Joint cost allocated to CBL Problem 17-27 Part 2 2. Calculate the amount of joint cost allocated to the mine support braces (MSB) on a relative-sales value basis. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answer to the nearest dollar amount.) Joint cost allocated to MSB
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