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Serene Dairy Has 4 Product Lines: Sour Cream, Ice Cream

Question 99

Multiple Choice

Serene Dairy has 4 product lines: sour cream, ice cream, yogurt, and butter.The total costs of producing the milk base for the products is $53,000 which has been allocated based on litres of milk base used by each product.Results of July follow:  Sour Cream Ice Cream  Yogurt  Butter  Total  Units sold 1,7007505005,0007,950 Revenue $7,000$15,000$12,000$25,000$59,000 Variable departmental costs 4,00010,0007,00012,00033,0000 Fixed costs 4,5001,0002,0006,00013,500 Net income (loss)  $1,500) $4,000$3,000$7,000$12,500\begin{array}{lccccc}&\text { Sour Cream } & \text {Ice Cream } & \text { Yogurt } & \text { Butter } & \text { Total }\\\hline\text { Units sold } & 1,700 & 750 & 500 & 5,000 & 7,950 \\\text { Revenue } & \$ 7,000 & \$ 15,000 & \$ 12,000 & \$ 25,000 & \$ 59,000 \\\text { Variable departmental costs } & 4,000 & 10,000 & 7,000 & 12,000 & 33,0000 \\\text { Fixed costs } & 4,500 & 1,000 & 2,000 & 6,000 & 13,500 \\\text { Net income (loss) } & \$ 1,500) & \$ 4,000 & \$ 3,000 & \$ 7,000 & \$ 12,500\end{array} How much are total joint costs of the products?


A) $33,000
B) $13,500
C) $53,000
D) $12,500

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