A Company Was Evaluating the Activity-Based Environmental Cost of Two

question 140

Essay

A company was evaluating the activity-based environmental cost of two different products: Product ABC and Product XYZ. Information on two environmental activities is as follows: $$\begin{array} { l l r } \text { Activity } & { \text { Driver } } & \text { Cost }\\\text { Maintaining pollution equipment } & \text { Maintenance hours } & \$ 120,000 \\\text { Toxic waste disposal } & \text { Kilograms of waste } & \$ 80,000\end{array}$$ Data on Product X and Product Y follows: $$\begin{array} { l r r } & \text { Product } \mathrm { ABC } & \text { Product XYZ } \\\text { Production costs (non-environmental) } & \$ 400,000 & \$ 500,000 \\\text { Units produced } & 100,000 & 200,000 \\\text { Maintenance hours for pollution equipment } & 1,000 & 4,000 \\\text { Kilograms of toxic waste } & 10,000 & 30,000\end{array}$$ A. Assign the environmental activity costs to Product ABC and to Product XYZ.
B. Calculate the unit environmental cost of Product ABC.
C. Calculate the unit environmental cost of Product XYZ.
D. Calculate the overall unit cost of Product ABC.
E. Calculate the overall unit cost of Product XYZ.

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Definitions:

Increased Diuresis

Elevated urine production, which can result from various physiological or medical conditions, leading to the excessive excretion of bodily fluids.

Virchow's Triad

A set of three factors (venous stasis, hypercoagulability, and endothelial damage) contributing to the formation of blood clots.

Deep Vein Thrombosis

A blood clot that forms in a deep vein, usually in the legs, potentially leading to serious complications if not treated.

Alterations In Blood Constituents

Any changes or abnormalities in the components of blood, such as red blood cells, white blood cells, platelets, or plasma.