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Apply the Concepts Stout Company reported the following: 1. Environmental activity data Activity Design processes (to reduce pollution) Inspect processes (for pollution problems) Maintain
Apply the Concepts Stout Company reported the following: 1. Environmental activity data Activity Design processes (to reduce pollution) Inspect processes (for pollution problems) Maintain environmental equipment Toxic waste disposal Driver data Costs $ 90,000 160,000 250,000 400,000 Cleanser A Cleanser B Design hours 4,000 2,000 Inspection hours 3,500 4,500 Maintenance hours 400 9,600 Pounds of waste 2,000 38,000 2. Other production data Cleanser A Cleanser B Non environmental production costs Units produced $1,840,000 200,000 $3,260,000 200,000 Required: Cleanser A Cleanser B 60,000 30,000 70,000 90,000 10,000 20,000 240,000 380,000 160,000 $ 1,840,000 740,000 Required: Determine the unit environmental and unit costs of each product using ABC by completing the following table. When required, round your answers to the nearest cent. Activities (activity rate x driver usage) (A assignment first, then B) Design processes ($ Inspect processes ($ Maintain equipment ($ Toxic waste disposal ($ Total environmental cost 2,000 X X 160,000 X X 250,000 X X 40,000 X X 4,000; $ 3,500 V; $ 2,000 X X 4,500 X X 6,000 X ) 8,000 X ) 400; $ 2,000 ; $ 9,600 X X 38,000 X X 10,000 X) 40,000 X ) Other manufacturing costs (non environmental) Total cost (environmental + other) Unit environmental cost Unit cost (environmental + other) A A S 200,000 X A 3,260,000 4,000,000 20,000,000 X $ 2,000,000 X 10 St 20
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