Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities:

	Alpha	Zeta
Units produced	400	48,000
Batch size (units)	10	800
Total direct labor hours	4,000	65,000
Cost per setup	$ 2,000	$ 4,000

Assume the cost per setup remains at $2,000 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.)

	Activity Based Costing	Volume Based Costing
A)	$ 400.00	$ 21.00
B)	$ 500.00	$ 20.00
C)	$ 80.00	$ 22.00
D)	$ 1.95	$ 3.90
E)	None of these answer choices is correct.