Each Pound of the Raw Material, Ore, Yields 5 Units

Multiple Choice

Each pound of the raw material, ore, yields 5 units of Beta and 15 units of Gamma.Ore costs $20 per pound.A pound of ore has processing costs (not including the cost of the raw material) of $30 at the split-off point.The selling price for a unit of Beta is $80.The selling price for a unit of Gamma is $40.If the physical quantities method is used to allocate the joint costs, what is the total cost that will be allocated to each unit of Beta?

A) $12.50
B) $16.67
C) $7.50
D) $5.00