Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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)
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 300 10 2,000 $ 1,500 Zeta 28,000 800 40,000 $ 3,000 Assume the cost per setup remains at $1,500 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.) Activity Based Costing Volume Based Costing A) B) c) D) E) $ 300.00 $ 380.00 $ 60.00 $ 1.43 $ 10.20 $ 9.20 $ 11.20 $ 2.86 None of these answer choices is correct. Multiple Choice Option E Option B Option C Option D Option A
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started