Figure 14-8 Taylor 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 energy usage cost per unit of Product A2?

Question

Figure 14-8 Taylor 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 energy usage cost per unit of Product A2?

Quizplus · Accepted Answer

To find the energy usage cost per unit of Product A2, we need to divide the total energy usage cost of A2 ($32,000) by the total units of A2 produced (2,000). This gives us a cost of $16 per unit of A2. Therefore, the answer is C) $0.016.

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