Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
Environmental activity costs
Activity Costs
Design products to reduce pollution $
Test for contamination
Treat toxic waste
Operate pollution control equipment
Driver data
Cleanser X Cleanser Y
Design hours
Testing hours
Pounds of waste
Machine hours
Other production data
Cleanser X Cleanser Y
Nonenvironmental production costs $ $
Units produced
Required:
Calculate the activity rates that will be used to assign environmental costs to products.
Design products $fill in the blank
per design hour
Testing $fill in the blank
per test hour
Treating waste $fill in the blank
per pound of waste
Operating equipment $fill in the blank
per machine hour
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
$fill in the blank
Unit cost $fill in the blank
$fill in the blank
What if the design costs increased to $ and the cost of toxic waste decreased to $ Assume that Cleanser Y uses out of design hours. Also assume that waste is cut by percent and that Cleanser Y is responsible for of 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
per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started