Vreeland, inc., manufactures products x, y, and z from a common process. joint costs were $77,000. additional information is as follows: if processed further units sales value at sales additional product produced split-off value costs x 7,700 $ 57,000 $ 80,500 $ 5,700 y 5,700 52,000 70,500 8,550 z 3,700 42,000 55,500 9,700 17,100 $ 151,000 $ 206,500 $ 23,950 assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to product x? $53,400. $34,673. $44,000. $47,700.

A is the correct option.

Explanation:

It shows the number of workers who are willing and able to work in a particular occupation at different wages. Various factors affect the supply of labor. The two factors are the substitution effect of a rise in wages and the income effect of a rise in wages. According to the substitution supply, if the wages are higher then the workers will value work instead of leisure. It causes the labor to work for more hours as the wags rise. The income effect occurs when the increase in wages causes the workers to work for fewer hours because the workers get a higher income by working fewer hours and hence may work less.