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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 3,000 $4,000
Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Alpha 250 10 3,000 $4,000 Zeta Units produced Batch size (units) Total direct labor hours Cost per setup 72, 000 500 457, 200 S 4, 000 Assume the cost per setup remains at $4,000 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 $800.00 $980.00 $160.00 $ 1.09 Volume Based Costing A. B) C) D) E) $15.08 $14.08 S16.08 s 2.18 None of these answer choices is correct
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