Solved

A Company Was Evaluating the Activity-Based Environmental Cost of Two

Question 153

Essay

A company was evaluating the activity-based environmental cost of two different products: Product ABC and Product XYZ. Information on two environmental activities is as follows:  Activity  Driver  Cost  Maintaining pollution equipment  Maintenance hours $120,000 Toxic waste disposal  Kilograms of waste $80,000\begin{array} { l l r } \text { Activity } & { \text { Driver } } & \text { Cost }\\\text { Maintaining pollution equipment } & \text { Maintenance hours } & \$ 120,000 \\\text { Toxic waste disposal } & \text { Kilograms of waste } & \$ 80,000\end{array} Data on Product X and Product Y follows:  Product ABC Product XYZ  Production costs (non-environmental) $400,000$500,000 Units produced 100,000200,000 Maintenance hours for pollution equipment 1,0004,000 Kilograms of toxic waste 10,00030,000\begin{array} { l r r } & \text { Product } \mathrm { ABC } & \text { Product XYZ } \\\text { Production costs (non-environmental) } & \$ 400,000 & \$ 500,000 \\\text { Units produced } & 100,000 & 200,000 \\\text { Maintenance hours for pollution equipment } & 1,000 & 4,000 \\\text { Kilograms of toxic waste } & 10,000 & 30,000\end{array} A. Assign the environmental activity costs to Product ABC and to Product XYZ.
B. Calculate the unit environmental cost of Product ABC.
C. Calculate the unit environmental cost of Product XYZ.
D. Calculate the overall unit cost of Product ABC.
E. Calculate the overall unit cost of Product XYZ.

Correct Answer:

verifed

Verified

A. Environmental cost of = [$120,000(1,0...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents