Pinter Company had the following environmental activities and product information:
1. Environmental activity costs
| Activity | Costs |
| Design products (to reduce pollution) | $ 81,000 |
| Test for contamination | 144,000 |
| Treat toxic waste | 450,000 |
| Operate pollution control equipment | 360,000 |
2. Driver data
| Solvent X | Solvent Y | |
| Design hours | 1,800 | 3,600 |
| Testing hours | 3,200 | 11,200 |
| Pounds of waste | 400 | 17,600 |
| Machine hours | 1,800 | 70,200 |
3. Other production data
| Solvent X | Solvent Y | |
| Nonenvironmental production costs | $2,052,000 | $5,436,000 |
| Units produced | 360,000 | 360,000 |
Required:
1. Calculate the activity rates that will be used to assign environmental costs to products.
| Design products | $fill in the blank 1 | per design hour |
| Testing | per test hour | |
| Treating waste | per pound of waste | |
| Operating equipment | 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 | Solvent X | Solvent Y |
| Unit environmental cost | ||
| Unit cost |
3. What if the design costs increased to $171,000 and the cost of toxic waste decreased to $225,000? Assume that Solvent Y uses 1,800 out of 3,600 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for 4,275 of 4,500 pounds of toxic waste. What is the new environmental cost for Solvent Y? If required, round your intermediate calculations and answer to the nearest cent.
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com