Skanda Corporation manufactures two chemicals (Flextra and Hydro) in a joint process. Data from a recent month follow. 
Costs:
	Direct materials used 	$360,000
	Direct labor 	$150,000
	Manufacturing overhead 	$690,000
Manufacturing output:
	Flextra 	40,000 gallons
	Hydro 	120,000 gallons
Flextra sells for $15 per gallon and Hydro sells for $20 per gallon.
Required:
1.	Compute the total joint costs to be allocated.
2.	Compute the joint costs that would be allocated to Flextra by using the physical-units method.
3.	Compute the joint costs that would be allocated to Hydro by using the relative-sales-value method.
4.	Assume that Hydro can be converted into a more refined product, Hydro-R, in a totally separable process at an additional cost of $4 per gallon. If the refined product can be sold in the marketplace for $26 per gallon, should Skanda process do the additional processing? Briefly explain.