Electro Corp sells a refrigerator and a freezer as a single package for $1150. Other data are in the chart below.

Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediary calculations.)
A) $304.82
B) $575.00
C) $661.45
D) $845.18

Question

Electro Corp sells a refrigerator and a freezer as a single package for $1150. Other data are in the chart below.

Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation, what amount will be allocated to the refrigerator? (Do not round any intermediary calculations.)
A) $304.82 
B) $575.00 
C) $661.45 
D) $845.18

Quizplus · Accepted Answer

Amount allocated to Refrigerator = $610 / ($610 + $220) × $1150 = $845.18

Electro Corp Sells a Refrigerator and a Freezer as a Single