17-6 - Environmental Cost Assignment (Excel)

Faraday Chemical produces two chemical products: an herbicide and an insecticide. The controller and environmental manager have identified the following environmental activities and costs associated with the two products

	Herbicide	Insecticide
Pounds produced	12,000,000	30,000,000
Packaging materials (pounds)	3,600,000	1,800,000
Energy usage (kilowatt hours)	1,200,000	600,000
Toxin releases (pounds into air)	3,000,000	600,000
Pollution control (machine hours)	480,000	120,000
Cost of activities:
Using packaging materials	5,400,000
Using energy	1,440,000
Releasing toxins (fines)	720,000
Operating pollution control equipment	1,680,000

Required:

1. Calculate the environmental cost per pound for each product. Which of the two appears to cause the most degradation to the environment?

2. In which environmental category would you classify excessive use of materials and energy?

Please show the calculations for number 1 and not just the final answer, thank you!