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Shultz Company had the following environmental activities and product information: 1 . Environmental activity costs Activity Costs Design products ( to reduce pollution ) $

Shultz Company had the following environmental activities and product information:
1. Environmental activity costs
Activity Costs
Design products (to reduce pollution) $ 244,800
Test for contamination 435,200
Treat toxic waste 1,360,000
Operate pollution control equipment 1,088,000
2. Driver data
Cleanser X Cleanser Y
Design hours 5,4004,800
Testing hours 9,70017,500
Pounds of waste 1,10032,900
Machine hours 5,400130,600
3. Other production data
Cleanser X Cleanser Y
Nonenvironmental production costs $4,216,000 $8,296,000
Units produced 680,000680,000
Required:
1. Calculate the activity rates that will be used to assign environmental costs to products.
Design products $fill in the blank 1
24
per design hour
Testing $fill in the blank 2
16
per test hour
Treating waste $fill in the blank 3
40
per pound of waste
Operating equipment $fill in the blank 4
8
per machine hour
2. Determine the unit environmental and unit costs of each product using ABC. If required, round your answers to the nearest cent.
Activities Cleanser X Cleanser Y
Unit environmental cost $fill in the blank 5
6
$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 $334,800 and the cost of toxic waste decreased to $680,000? Assume that Cleanser Y uses 9,600 out of 19,200 design hours. Also assume that waste is cut by 50 percent and that Cleanser Y is responsible for 12,920 of 13,600 pounds of toxic waste. What is the new environmental cost for Cleanser Y? If required, round your intermediate calculations and answer to the nearest cent.
$fill in the blank 9
per unit

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