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A company who produces two different products, Product X and Product Y, Is busy to evaluate the activity-based environmental cost of each product The following

A company who produces two different products, Product X and Product Y, Is busy to evaluate the activity-based environmental cost of each product

The following Is Information on two of the environmental activities

Activity

Driver

Cost

R

Maintenance of pollution equipment

Maintenance hours

120,000

Disposal of toxic waste

Kilograms of waste

80,000

The following data Is available for Product X and Product Y

Product X

Product Y

Non-environmental production costs

R400,000

R500,000

Number of units produced

100,000

200,000

Maintenance hours for pollution equipment

1,000

4,000

Toxic waste In Kilograms

10,000

30,000

3 1 Assign the environmental activity costs to Product X and to Product Y (2)

  1. Calculate the unit environmental cost of Product X (2)

  1. Calculate the unit environmental cost of Product Y (2)

  1. Calculate the overall unit cost of Product X (2)

  1. Calculate the overall unit cost of Product Y (2)

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