Formula, Inc., processes sugar into candy and powdered drink mix. The sugar costs $61,000 per load. The process involves mixing the sugar for 2 hours, producing 60,000 packs of candy with a market value of $25,000, and 20,000 packs of drink mix with a market value of $100,000. The joint cost of the mixing process is $28,600.
a) Calculate the cost assigned to candy if the sugar and mixing process costs are allocated on the basis of units of output. Round your answer to the nearest whole dollar and enter without symbols.
b) If the sugar and the mixing process costs are to be allocated on the basis of units of output, what cost is assigned to powdered drink mix? Round your answer to the nearest whole dollar and enter without symbols.