HCL Chemicals produces two chemicals, HC&HL. Certain ingredients are shared by both products and these are...

 

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HCL Chemicals produces two chemicals, HC&HL. Certain ingredients are shared by both products and these are combined at the beginning of production. A batch of 118 gallons of pre-mix is split- 60 gallons to the HC department and 88 gallons to the HL department. Producing a batch of pre-mix costs $580. Final sales price (per gallon) are $310 for HC and $675 for HL. Using gallons as the allocation base, how much pre-mix is allocated to the HC department? Show your work. HCL Chemicals produces two chemicals, HC&HL. Certain ingredients are shared by both products and these are combined at the beginning of production. A batch of 118 gallons of pre-mix is split- 60 gallons to the HC department and 88 gallons to the HL department. Producing a batch of pre-mix costs $580. Final sales price (per gallon) are $310 for HC and $675 for HL. Using gallons as the allocation base, how much pre-mix is allocated to the HC department? Show your work.

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