Figure 14-8 Carbondioxide Chemical produces a number of chemical products, two of which are Product A1 and Product A2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:
Refer to Figure 14-8. What is the pollution control cost per unit of Product A2?

Question

Figure 14-8 Carbondioxide Chemical produces a number of chemical products, two of which are Product A1 and Product A2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:
 Refer to Figure 14-8. What is the pollution control cost per unit of Product A2?

Quizplus · Accepted Answer

Pollution control cost per unit of Product A2 = Total pollution control cost for Product A2 / Total units of Product A2
= (156,800 + 22,400 + 2,800) / 14,000
= $0.0112 per unit.

Figure 14-8 Carbondioxide Chemical Produces a Number of Chemical Products