Durden Soap manufactures Bar soap and Liquid soap. Certain ingredients are shared, and combined before going to each department. A batch of 100 gallons of pre-mix results in 40 gallons to the Bar Department and 60 gallons to Liquid. Producing a batch of pre-mix costs $360. Total sales are $160 for Bar and $480 for Liquid. Using gallons as the allocation base, how much pre-mix cost is allocated to the Bar Department?

Answer rating: 100% (QA)

To allocate the premix cost to the Bar Department using gallons as the allocatio... View the full answer