Differential Chemical produced 10,500 gallons of Preon and 14,000 gallons of Paron

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Differential Chemical produced 10,500 gallons of Preon and 14,000 gallons of Paron. Joint costs incurred in producing the two products totaled $8,200. At the split-off point, Preon has a market value of $8.00 per gallon and Paron $4.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.

Multiple Choice

$1,640.

$3,280.

$4,100.

$7,505.

$4,920.