Tango 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

• Option A

• Option B

• Option C

• Option D