Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation, what amount will be allocated to the refrigerator

ACCOUNTING

Multiple Choice

The Appliance Store sells a refrigerator and a freezer as a single package for $1,000. Other data are in the chart below.


Refrigerator


Full-size Freezer


Packaged Price

Selling price


$825


$375


$1,000

Manufacturing cost per unit


$620


$180


Stand-alone product revenues


$1,225,000


$775,000


Using the stand-alone method with stand-alone product revenues as the weight for revenue allocation, what amount will be allocated to the refrigerator?

a. $687.50

b. $612.50

c. $625.00

d. $825.00

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