Activity$-$Based Environmental Cost Assignments

Pinter Company had the following environmental activities and product information:

$1.$ Environmental activity costs

Activity

Costs

Design products $($to reduce pollution$)$

$ $270,000$

Test for contamination

$480,000$

Treat toxic waste

$1,500,000$

Operate pollution control equipment

$1,200,000$

$2.$ Driver data

Solvent X

Solvent Y

Design hours

$6,000$

$3,000$

Testing hours

$10,500$

$13,500$

Pounds of waste

$1,200$

$28,800$

Machine hours

$6,000$

$114,000$

$3.$ Other production data

Solvent X

Solvent Y

Nonenvironmental production costs

$$5,040,000$

$$9,780,000$

Units produced

$600,000$

$600,000$

$2.$ Determine the unit environmental and unit costs of each product using ABC. If required, round your answers to the nearest cent.

Activities

Solvent X

Solvent Y

Unit environmental cost

$

fill in the blank $5$

$

fill in the blank $6$

Unit cost

$

fill in the blank $7$

$

fill in the blank $8$

$3.$ What if the design costs increased to $$360,000$ and the cost of toxic waste decreased to $$750,000?$ Assume that Solvent Y uses $6,000$ out of $12,000$ design hours. Also assume that waste is cut by $50$ percent and that Solvent Y is responsible for $14,250$ of $15,000$ pounds of toxic waste. What is the new environmental cost for Solvent Y$?$ If required, round your answer to the nearest cent.

$

fill in the blank $9$

per unit