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Galactic Empire Ltd is considering the possibility of using Activity Based Costing in calculating the environmental cost per unit for each of two products, Rex and Tano. Galactic Empire management believes that the main source of the environmental problems lies with Rex, but would like some evidence to support or refute this belief. The following data are provided: Rex Tano Number of units produced 100,000 800,000 Engineering hours (process design) 1,000 2.000 Pounds of solid residues treated 4,000 1,000 Inspection hours (environmental) 5.000 2,000 Clean up hours (local lake) 8.000 3,000 The following environmental activity costs were also reported: 2,000 Clean up hours (local lake) 8,000 3,000 The following environmental activity costs were also reported: Designing process $ 90,000 Treating residues 400.000 Inspecting processes 84.000 Cleaning up lake 110.000 Required: Required: Calculate the environmental cost for Rex and Tano as follows (Round answers to 2 decimal places): REX- The total allocated environmental cost $ REX The allocated environmental cost per $ unit TANO - The total allocated environmental cost TANO - The allocated environmental cost per unit PART B Based on your calculation, which product is more environmentally friendly. Briefly explain. (Choose Rex OR Tano answer) Based on ABC above. is more environmentally friendly, 's production process is because the environmental costs incurred by higher

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