21) Environmental costing and ABC:

Abbot Corporation produces 200,000,000 units of product X and 80,000,000 of product Y with the following costs and machine hours.

	Product X	Product Y	Total
Direct costs (material plus labor)	$18,000,000	$8,000,000
Environmental support		28,000,000
Nonenvironmental support	44,000,000	58,000,000
Total support	$44,000,000	$86,000,000	$130,000,000
Total machine hours	20,000,000	12,000,000	32,000,000

a.Determine total product cost per unit for each product using a traditional costing system with machine hours as the cost driver.

b.Determine total product cost per unit for each product using an activity based costing system. Use the number of units as the cost driver for each activity.