Required:1. Calculate the environmental cost per pound for each product. Round your calculations and answers to four decimal places.Unit Cost Per PoundOrg ABOrg XYWhich of the two products appears to cause the most degradation to the environment?2. In which environmental category would you classify excessive use of materials and energy?3. Suppose that the toxin releases cause health problems for those who live near the chemical plant. The costs, due to missed work and medicaltreatments, are estimated at $1,430,000 per year. How would assignment of these costs change the unit cost? Round your calculations andanswers to three decimal places.Org ABOrg XYbybyUnit Cost100 Environmental Cost AssignmentWaurika Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of two of its most wide-selling anti-cancerdrugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:Org ABPounds producedPackaging materials (pounds)Energy usage (kilowatt-hours)Toxin releases (pounds into air)Pollution control (machine hours)Costs of activities:Using packaging materialsUsing energyReleasing toxins (fines)Operating pollution control equipment4,950,0001,650,000550,000825,000110,000$2,200,000330,000330,000660,000Org XY13,750,000550,000385,000440,00055,000

Activity Centers Org AB Org XY Total Packaging materials 16,50,000 5,50,000 22,00,000 Energy…

Waurika Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of two of its most wide-selling anti-cancer drugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Org AB 4,950,000 1,650,000 550,000 Pounds produced Packaging materials (pounds) Energy usage (kilowatt-hours) Toxin releases (pounds into air) Pollution control (machine hours) Costs of activities: Using packaging materials Using energy Releasing toxins (fines) Operating pollution control equipment 825,000 110,000 $2,200,000 330,000 330,000 660,000 Org XY 13,750,000 550,000 385,000 440,000 55,000

Waurika Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of two of its most wide-selling anti-cancer drugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Org AB 4,950,000 1,650,000 550,000 Pounds produced Packaging materials (pounds) Energy usage (kilowatt-hours) Toxin releases (pounds into air) Pollution control (machine hours) Costs of activities: Using packaging materials Using energy Releasing toxins (fines) Operating pollution control equipment 825,000 110,000 $2,200,000 330,000 330,000 660,000 Org XY 13,750,000 550,000 385,000 440,000 55,000

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 23E: Coyle Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of...

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