A sawmill bought a shipment of logs for $44,000. When cut, the logs produced a million board feet of lumber in the following grades:

Type 1 - 340,000 bd. ft. priced to sell at $.12 per bd. ft.

Type 2 - 320,000 bd. ft. priced to sell at $.06 per bd. ft.

Type 3 - 340,000 bd. ft. priced to sell at $.04 per bd. ft.

How much cost should be allocated to Type 1 and Type 2, respectively?

Type 1Type 2

(A)$40,800$40,800

(B)$40,800$19,200

(C)$44,000$13,600

(D)$24,391$11,478

(E)$24,391$8,130

A Above.

B Above.

E Above.

C Above.

D Above.