Question
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)
- Calculate the unit environmental cost of Product X (2)
- Calculate the unit environmental cost of Product Y (2)
- Calculate the overall unit cost of Product X (2)
- Calculate the overall unit cost of Product Y (2)
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