Hannibal Company produces a number of chemical products, two of which are Product X1 and Product X2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: What is the pollution control cost per unit of Product X2?

Question

Hannibal Company produces a number of chemical products, two of which are Product X1 and Product X2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:  What is the pollution control cost per unit of Product X2?

Quizplus · Accepted Answer

Pollution control cost per unit of X2 = (Total pollution control cost for X2) / (Total units of X2 produced) 
= ($8,960) / (400 units) 
= $22.4 per unit = $0.0224 per unit. Therefore, the correct answer is C.

Hannibal Company Produces a Number of Chemical Products, Two of Which