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29. Hannibal Company produces a number of chemical products, two of which are Product X1...

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Accounting

29. Hannibal Company produces a number of chemical products, two of which are Product X1 and Product X2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products:
Product X1 Product X2
Pounds produced 400,0001,000,000
Packaging materials (pounds)120,00060,000
Energy usage (kilowatt hours)40,00020,000
Toxic releases (pounds into air)100,00020,000
Pollution control (machine hours)16,0004,000
Costs of activities:
Using packaging materials $360,000
Using energy 96,000
Releasing toxins (fines)48,000
Operating pollution control equipment 112,000
What is the energy usage cost per unit of Product X2?
a. $0.096
b. $0.064
c. $0.032
d. $0.160

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