1. Use the high/low method to determine the fixed costs for a product, which has high and low mixed product costs as follows: 50,000 units produced at a cost of $36,000 and 80,000 units produced at a cost of $48,000.
A. $ 6,000
B. $ 8,000
C. $16,000
D. $30,000
2. In a joint manufacturing process, a chemical company produces 10,000 gallons of the chemical Argon, and 10,000 gallons of the chemical Krylon. The joint costs of processing are $45,000 for materials and $160,000 for conversion costs. The Argon sells for a total of $273,000, and the Krylon for $182,000. Using the relative sales value method, the costs to be assigned to Krylon are:
A. $123,000
B. $82,000
C. $102,500
D. $64,000