Pinter Company had the following environmental activities and product information:
1. Environmental activity costs
Activity Costs
Design products (to reduce pollution) .... $ 270,000
Test for contamination .......... 480,000
Treat toxic waste .......... 1,500,000
Operate pollution control equipment .. 1,200,000
2. Driver data
3. Other production data
1. Calculate the activity rates that will be used to assign environmental costs to products.
2. Determine the unit environmental and unit costs of each product using ABC.
3. What if the design costs increased to $360,000 and the cost of toxic waste decreased to $750,000? Assume that Solvent Y uses 6,000 out of 12,000 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for 14,250 of 15,000 pounds of toxic waste. What is the new environmental cost for Solvent Y?

  • CreatedSeptember 01, 2015
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