Question
Activity-Based Environmental Cost Assignments Shultz Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce
Activity-Based Environmental Cost Assignments Shultz Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 126,000 Test for contamination 224,000 Treat toxic waste 700,000 Operate pollution control equipment 560,000 2. Driver data Cleanser X Cleanser Y Design hours 2,800 1,400 Testing hours 5,000 6,200 Pounds of waste 600 13,400 Machine hours 2,800 53,200 3. Other production data Cleanser X Cleanser Y Nonenvironmental production costs $1,372,000 $4,228,000 Units produced 280,000 280,000 Required: 1. Calculate the activity rates that will be used to assign environmental costs to products. Design products per design hour Testing per test hour Treating waste Operating equipment per pound of waste per machine hour Activity-Based Environmental Cost Assignments Shultz Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 126,000 Test for contamination 224,000 Treat toxic waste 700,000 Operate pollution control equipment 560,000 2. Driver data Cleanser X Cleanser Y Design hours 2,800 1,400 Testing hours 5,000 6,200 Pounds of waste 600 13,400 Machine hours 2,800 53,200 3. Other production data Cleanser X Cleanser Y Nonenvironmental production costs $1,372,000 $4,228,000 Units produced 280,000 280,000 Required: 1. Calculate the activity rates that will be used to assign environmental costs to products. Design products per design hour Testing per test hour Treating waste Operating equipment per pound of waste per machine hour
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