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 pollution control 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 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
= $1,120 / (40,000 + 20,000) units
= $0.0112 per unit of Product A2.

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