Hurley Processors Processes Clay into Two Joint Products-Molding Foam and Craft

Multiple Choice

Hurley Processors processes clay into two joint products-molding foam and craft blocks.When processed, each pound of clay yields 20 units of foam and 80 units of blocks.Foam sells for $2 per unit and blocks sells for $1.50 per unit.The total cost to process a 100-pound batch of clay is $35.If the physical quantities method is used to allocate the joint costs, how much will be allocated to each batch of modeling foam?

A) $7.00
B) $8.75
C) $28.00
D) $40.00