Net Realizable Value Method, Decision to Sell at Split$-$off or Process Further

Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $$60,000,$ and $15,000$ units of overs and $34,000$ units of unders were produced. Separable processing costs beyond the split$-$off point were as follows: overs, $$20,000$; unders, $$16,760.$ Overs sell for $$2\mathrm{.}00$ per unit; unders sell for $$3\mathrm{.}14$ per unit.

Required:

$1.$ Allocate the $$60,000$ joint costs using the estimated net realizable value method.

Allocated Joint Cost

Overs $$\_\_\_\_\_$

Unders $$\_\_\_$

$2.$ Suppose that overs could be sold at the split$-$off point for $$1\mathrm{.}80$ per unit. Should Pacheco sell overs at split$-$off or process them further?

Overs should not be processed further as there will be $$\_\_\_\_$ more profit if sold at split$-$off.