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Activity-Based Environmental Cost Assignments Shultz Company had the following environmental activities and product information: 1. Environmental activity costs Activity Design products (to reduce pollution)
Activity-Based Environmental Cost Assignments Shultz Company had the following environmental activities and product information: 1. Environmental activity costs Activity Design products (to reduce pollution) Test for contamination Costs $ 135,000 240,000 Treat toxic waste Operate pollution control equipment 2. Driver data 750,000 600,000 Cleanser X Cleanser Y Design hours 3,000 4,500 Testing hours 5,300 14,700 Pounds of waste 600 24,400 Machine hours 3,000 97,000 3. Other production data Cleanser X Cleanser Y Nonenvironmental production costs $3,050,000 $7,250,000 Units produced 500,000 500,000 Required: 1. Calculate the activity rates that will be used to assign environmental costs to products. Design products Testing per design hour per test hour per pound of waste Treating waste Operating equipment per machine hour
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