2. Danone Chemical produces two chemical products: an herbicide and an insecticide. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Herbicide Insecticide 10,000,000 12,000,000 250,000 125,000 800,000 1,000,000 1,650,000 800,000 360,000 220,000 Pounds produced Process design (engineering hours) Energy usage (kilowatt hours) Toxin releases (pounds into air) Pollution control (machine hours) Costs of activities: Designing process $5,785,000 Using energy $9,350,000 Releasing toxins (fines) $26,950,000 Operating polluting control equipment $4,640,000 Required: a. Classify the costs as prevention, detection, internal failure, or external failure! b. Calculate the environmental cost per pound for each product. Which of the two appears to cause the most degradation to the environment? (Round 3 numbers behind comma)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. Danone Chemical produces two chemical products: an herbicide and an
insecticide. The controller and environmental manager have identified the
following environmental activities and costs associated with the two products:
Herbicide Insecticide
10,000,000 12,000,000
250,000
125,000
800,000
1,000,000
1,650,000 800,000
360,000
220,000
Pounds produced
Process design (engineering hours)
Energy usage (kilowatt hours)
Toxin releases (pounds into air)
Pollution control (machine hours)
Costs of activities:
Designing process
$5,785,000
Using energy
$9,350,000
Releasing toxins (fines)
$26,950,000
Operating polluting control equipment $4,640,000
Required:
a. Classify the costs as prevention, detection, internal failure, or external
failure!
b. Calculate the environmental cost per pound for each product. Which of
the two appears to cause the most degradation to the environment?
(Round 3 numbers behind comma)
Transcribed Image Text:2. Danone Chemical produces two chemical products: an herbicide and an insecticide. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Herbicide Insecticide 10,000,000 12,000,000 250,000 125,000 800,000 1,000,000 1,650,000 800,000 360,000 220,000 Pounds produced Process design (engineering hours) Energy usage (kilowatt hours) Toxin releases (pounds into air) Pollution control (machine hours) Costs of activities: Designing process $5,785,000 Using energy $9,350,000 Releasing toxins (fines) $26,950,000 Operating polluting control equipment $4,640,000 Required: a. Classify the costs as prevention, detection, internal failure, or external failure! b. Calculate the environmental cost per pound for each product. Which of the two appears to cause the most degradation to the environment? (Round 3 numbers behind comma)
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