WP Corporation produces products X, Y, and 2 from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Product X 2,500 $ 23.00 $ 2.00 Added processing costs per unit Per unit sales value if processed further $ 27.00 The cost of the joint raw material input is $92,000. Which of the products should be processed beyond the split-off point? Units produced Per unit sales value at split-off A) D) Product X yes yes no no Product Y yes no yes yes Product Z no yes no yes Product Y 3,000 $24.00 $ 4.00 $ 27.00 Product z 4,000 $ 25.00 $ 4.00 $ 32.00

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.