Activity-Based Environmental Cost AssignmentsPinter Company had the following environmental activities and product information:1. Environmental activity costsActivityCostsDesign products (to reduce pollution)$ 153,900 Test for contamination273,600 Treat toxic waste855,000 Operate pollution control equipment684,000 2. Driver data Solvent XSolvent YDesign hours3,400 2,300 Testing hours6,100 9,100 Pounds of waste700 18,300 Machine hours3,400 72,600 3. Other production data Solvent XSolvent YNonenvironmental production costs$3,344,000 $3,876,000 Units produced380,000 380,000 Design products27per design hourTesting18per test hourTreating waste45per pound of wasteOperating equipment9per machine hour Required:2. Determine the unit environmental and unit costs of each product using ABC. If required, round your answers to the nearest cent.ActivitiesSolvent XSolvent YUnit environmental cost$fill in the blank 5$fill in the blank 6Unit cost$fill in the blank 7$fill in the blank 83. What if the design costs increased to $243,900 and the cost of toxic waste decreased to $427,500? Assume that Solvent Y uses 4,600 out of 9,200 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for 8,122.5 of 8,550 pounds of toxic waste. What is the new environmental cost for Solvent Y? If required, round your intermediate calculations and answer to the nearest cent.$fill in the blank 9 per unit

Activity Based Costing This method allocates overhead costs by assigning them to activities. Cost…

Answered: 2. Determine the unit environmental and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Activity-Based Environmental Cost Assignments

Pinter Company had the following environmental activities and product information:

1. Environmental activity costs

Activity	Costs
Design products (to reduce pollution)	$ 153,900
Test for contamination	273,600
Treat toxic waste	855,000
Operate pollution control equipment	684,000

2. Driver data

	Solvent X	Solvent Y
Design hours	3,400	2,300
Testing hours	6,100	9,100
Pounds of waste	700	18,300
Machine hours	3,400	72,600

3. Other production data

	Solvent X	Solvent Y
Nonenvironmental production costs	$3,344,000	$3,876,000
Units produced	380,000	380,000

Design products	27	per design hour
Testing	18	per test hour
Treating waste	45	per pound of waste
Operating equipment	9	per machine hour

Required:

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	$fill in the blank 5	$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 $243,900 and the cost of toxic waste decreased to $427,500? Assume that Solvent Y uses 4,600 out of 9,200 design hours. Also assume that waste is cut by 50 percent and that Solvent Y is responsible for 8,122.5 of 8,550 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.
$fill in the blank 9 per unit

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