Answer:
Option B,$62,400 is correct
Explanation:
Firstly,we need to determine the sales of each joint product if sold after the split off point as follows:
Sales value of P=20,000*$2.20=$44,000
sales value of Q=60,000*$2.60=$156,000
total sales value =$200,000
joint cost is $80,000
joint cost allocated to Q=total joint cost*Q sales value/total sales value
=$80,000*156,000/200,000=$62,400
Out of the $80,000 joint cost incurred by both joint products,Q would be allocated $62,400
