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CoursHeroTranscribedText: Shultz Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 37,800 Test for contamination 67,200 Treat toxic waste 210,000 Operate pollution control equipment 168,000 2. Driver data Cleanser X Cleanser V Design hours 800 1,000 Testing hours 1,500 3,300 Paunds of Waste 200 5,800 Machine hours 800 23,200 3. Other production data Cleanser X Cleanser Y Nonenvironmental production costs $900,000 $1,512,000 Units produced 120,000 120,000 Required: 1. Calculate the activity rates that will be used to assign environmental costs to products. Design products $ per design hour Testing $ per test hour Treating waste $ per pound of waste Operating equipment 5 per machine hour 2. Determine the unit environmental and unit costs of each product using ABC. If required, round your answers to the nearest cent. A es Cleanser X Cleanser Y Unit environmental cost $ 3 Unit Cost $ $ 3. What ifthe design costs increased to $127,800 and the cost of toxic waste decreased to $105,000? Assume that Cleanser Y uses 2,000 out of 4,000 design hours. Also assume that waste is cut by 50 percent and that Cleanser V is responsible for 1,995 of 2,100 pounds of toxic waste. What is the new environmental cost for Cleanser Y? If required, round your intermediate calculations and answer to the nearest cent. 3 per unit

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