Lime Corporation produces joint products Joy and Raoul, together with by-product Bae. Joy is sold at split-off, but Raoul and Bae undergo additional processing. Production information pertaining to these products follow:

	Joy	Raoul	Bae	Total
Joint Costs:
Variable				88,000
Fixed				148,000
Separable Costs:
Variable		120,000	3,000	123,000
Fixed		90,000	1,000	92,000
Profit			1,000
Production (lbs.)	50,000	40,000	10,000	100,000
Sales Price/lbs.	$ 4	7.50	1.10

There is no beginning or ending inventories. No materials are spoiled in production. How much is thejoint cost allocated to Raoul?

2. AJ Corporation manufactures tables. The entity also does contract work for other customers and utilizes a job order costing system. The flexible budget covering next years' expected range of activity is:

Direct Labor Hours	50,000	80,000	110,000
Machine Hours	40,000	64,000	88,000
Variable Overhead Costs	$ 100,000	$ 160,000	$ 220,000
Fixed Overhead Costs	150,000	150,000	150,000
Total Overhead Costs	$ 250,000	$ 310,000	$ 370,000

A predetermined overhead rate is based on direct labor hours is used to apply total overhead. Management has estimated that 100,000 direct labor hours will be used next year. At the end of the year, actual direct labor hours for the year were 112,375 hours and the actual manufacturing overhead for the year was $412,525.What amount is the over/underapplied FOH?

3. Sama Company has 3 production departments: Key, Day, and Coy. It also has 2 service

departments: Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department.

Department	Direct Costs	Employees	Asset Value
Administration	1,800,000	50	900,000
Personnel	700,000	20	1,200,000
Key	1,400,000	30	600,000
Day	400,000	10	300,000
Coy	500,000	20	1,600,000

Under the direct method, how much is the the factory overhead rate of the Day department if it apply overhead based on direct labor hours and budgeted direct labor hours for the period total to 75,000 hours.