If juice extraction costs are allocated to product lines based on relative sales values, that is, each product line's portion of total sales, the amount allocated to popsicles will be
A) $900
B) $5,400
C) $4,500
D) None of the above

Question

Quizplus · Accepted Answer

Juice extraction costs are allocated to product lines based on relative sales values, that is, each product line's portion of total sales. The popsicles' sales value is $9,000, which is 20% of the total sales value of $45,000. Therefore, the amount allocated to popsicles will be 20% of the total juice extraction costs, which is $900.

If Juice Extraction Costs Are Allocated to Product Lines Based