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) $ 129,600 Test for contamination 230,400 Treat toxic waste 720,000 Operate pollution control equipment 576,000 2. Driver data Solvent X Solvent Y Design hours 2,900 1,900 Testing hours 5,100 7,700 Pounds of waste 600 15,400 Machine hours 2,900 61,100 3. Other production data Solvent X Solvent Y Nonenvironmental production costs $2,176,000 $4,128,000 Units produced 320,000 320,000 4. Activity rates that will be used to assign environmental costs to products. Design Produts 27 per design hour Testing 18 per test hour Treating waste 45 per pound of waste Operating equipment 9 per machine hour 1. 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 $fill in the blank Unit cost $fill in the blank $fill in the blank
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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) | $ 129,600 |
| Test for contamination | 230,400 |
| Treat toxic waste | 720,000 |
| Operate pollution control equipment | 576,000 |
2. Driver data
| Solvent X | Solvent Y | |
| Design hours | 2,900 | 1,900 |
| Testing hours | 5,100 | 7,700 |
| Pounds of waste | 600 | 15,400 |
| Machine hours | 2,900 | 61,100 |
3. Other production data
| Solvent X | Solvent Y | |
| Nonenvironmental production costs | $2,176,000 | $4,128,000 |
| Units produced | 320,000 | 320,000 |
4. Activity rates that will be used to assign environmental costs to products.
Design Produts 27 per design hour
Testing 18 per test hour
Treating waste 45 per pound of waste
Operating equipment 9 per machine hour
1. 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 | $fill in the blank |
| Unit cost | $fill in the blank | $fill in the blank |
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