Trans-Pacific Lumber runs a mill in the Northwest that produces two grades of lumber, A and B, and a by-product, sawdust. The company chooses to allocate the costs on the basis of the physical quantities method.

Last month, it processed 132,000 logs at a total cost of $357,000. The output of the process consisted of 34,700 units of grade A, 51,700 units of grade B, and 15,700 units of sawdust. The sawdust can be sold for $20,040. This is considered to be its net realizable value, which is deducted from the processing costs of the main products.

Required:

What share of the joint costs should be assigned to grade A and grade B?