Hanna 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

Hanna 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

The pollution control cost per unit of Product X2 can be calculated as follows:
Pollution control cost per unit of Product X2 = Total pollution control cost related to Product X2 / Total units of Product X2 produced
= ($1,680,000 + $260,000) / 100,000
= $18.4
= $0.2240 per unit
Therefore, the correct choice is C, $0.0224.

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