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Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Alpha 250 10 Units produced
Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Alpha 250 10 Units produced Batch size (units) Total direct labor hours Cost per setup Zeta 90,000 500 670,500 $ 4,500 3,500 $4,500 Assume the cost per setup remains at $4,500 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.) A) Activity Based Costing Volume Based Costing $ 900.00 $16.78 $1,100.00 $15.78 $ 180.00 $17.78 $ 1.02 $ 2.04 None of these answer choices is correct. C) E) Multiple Choice Option A Option B. Option C Option D Option E
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