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)

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)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 29E: Two products, Product A and Product B, are associated with the following environmental activities...

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