Question
Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Alpha Zeta Units produced 300
Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities:
| Alpha | Zeta | |||||
| Units produced | 300 | 28,000 | ||||
| Batch size (units) | 20 | 800 | ||||
| Total direct labor hours | 2,000 | 56,000 | ||||
| Cost per setup | $ | 3,000 | $ | 3,000 | ||
Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.)
| Alpha | Zeta | |||||
| A) | $ | 150.00 | $ | 3.75 | ||
| B) | $ | 375.00 | $ | 900.64 | ||
| C) | $ | 4.92 | $ | 5.00 | ||
| D) | $ | 93.00 | $ | 22.50 | ||
| E) | $ | 10.00 | $ | 0.11 | ||
Multiple Choice
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Option A
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Option B
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Option C
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Option D
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Option E
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Introduction To Business Statistics
Authors: Ronald M. Weiers
7th Edition
978-0538452175, 538452196, 053845217X, 2900538452198, 978-1111524081
