Environmental Cost Assignment Waurika Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of two of its most wide-selling anti-cancer drugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Org AB Org XY Pounds produced 4,950,000 13,750,000 Packaging materials (pounds) 1,650,000 550,000 Energy usage (kilowatt-hours) 550,000 385,000 Toxin releases (pounds into air) 825,000 440,000 Pollution control (machine hours) 110,000 55,000 Costs of activities: Using packaging materials $2,200,000 Using energy 330,000 Releasing toxins (fines) 330,000 Operating pollution control equipment 660,000