Answer:
the cost that should be allocated to flour is $144,000
Explanation:
The computation is shown below:
Particulars Total value
Feed (100,000 × $1.60) = $160,000
Flour (72,000 × $2.50) = $180,000
Starch (40,000 × $1.50) = $60,000
Total $400,000
Now the allocation made to flour is
= $180,000 ÷ $400,000 × $320,000
= $144,000
Hence, the cost that should be allocated to flour is $144,000