multiple choice:

• Option A

• Option B

• Option C

• Option D

• Option E

Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Units produced Batch size (units) Total direct labor hours Cost per setup Alpha 250 10 2,000 $3,000 Zeta 42,000 500 174,300 $ 3,000 Assume the cost per setup remains at $3,000 but that the batch size for product Alpha is changed from 10 to 25 units per batch. Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be: (Round intermediate calculations and your final answers to the nearest cent.) A) B) C) D E Activity Based Costing Volume Based Costing $600.00 $11.80 $740.00 $10.80 $120.00 $12.80 $ 1.35 $ 2.70 None of these answer choices is correct. Multiple Choice Option A