Environmental costing and ABC:
Abbot Corporation produces 200,000,000 units of product X and 80,000,000 of product Y with the following costs and machine hours.

a. Determine total product cost per unit for each product using a traditional costing system with machine hours as the cost driver.
b. Determine total product cost per unit for each product using an activity based costing system.Use the number of units as the cost driver for each activity.

Question

Environmental costing and ABC:
Abbot Corporation produces 200,000,000 units of product X and 80,000,000 of product Y with the following costs and machine hours.
  
a. Determine total product cost per unit for each product using a traditional costing system with machine hours as the cost driver.
b. Determine total product cost per unit for each product using an activity based costing system.Use the number of units as the cost driver for each activity.

Quizplus · Accepted Answer

The Answer of Environmental costing and ABC:
Abbot Corporation produces 200,000,000 units of product X and 80,000,000 of product Y with the following costs and machine hours.
  
a. Determine total product cost per unit for each product using a traditional costing system with machine hours as the cost driver.
b. Determine total product cost per unit for each product using an activity based costing system.Use the number of units as the cost driver for each activity.

Environmental Costing and ABC