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?
A) $0.2240
B) $0.0560
C) $0.0224
D) $0.0896

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?
A) $0.2240 
B) $0.0560 
C) $0.0224 
D) $0.0896

Quizplus · Accepted Answer

To calculate the pollution control cost per unit of Product X2, we need to divide the total pollution control cost of Product X2 by the total units of Product X2 produced. Total pollution control cost of Product X2 = $4,480 (from the table). Total units of Product X2 produced = 200,000. Therefore, pollution control cost per unit of Product X2 = $4,480 ÷ 200,000 = $0.0224. Thus, the correct answer is C.

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