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USING ACTIVITY BASES AND TRADITIONAL OVERHEAD COSTING, THE AMOUNT OF SETUP COST ALLOCATED TO EACH UNIT OF PRODUCT ALPHA WOULD BE WHAT???? 7. A firm

USING ACTIVITY BASES AND TRADITIONAL OVERHEAD COSTING, THE AMOUNT OF SETUP COST ALLOCATED TO EACH UNIT OF PRODUCT ALPHA WOULD BE WHAT????

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7. A firm produces and sells two products, Alpha and Zeta. The following information is available relating to setup costs (a part of factory overhead): Product Alpha Product Zeta Zeta Units produced 250 20,000 Batch size (units) 1025 500- Number of setups 25 40 Direct labour hours per unit 3 3 Total direct labour hours 750 60,000 Cost per setup $ 1,000 otal setup cost 65,000 ssume the cost per setup remains at $1,000 but that the batch size for product Alpha is anged from 10 to 25. Using activity-based and traditional overhead costing, the

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