Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities:

\begin{array}{lrr} & \text { Alpha } & \text { Zeta } \\\text { Units produced } & 250 & 20,000 \\\text { Batch size (units) } & 10 & 500 \\\text { Total direct labor hours } & 1,000 & 39,000 \\\text { Cost per setup } & \$ 2,000 & \$ 2,000\end{array}

Use of activity-based costing would allocate the following amounts of setup cost to each unit (rounded to the nearest cent): $Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: \begin{array}{lrr} & \text { Alpha } & \text { Zeta } \\ \text { Units produced } & 250 & 20,000 \\ \text { Batch size (units) } & 10 & 500 \\ \text { Total direct labor hours } & 1,000 & 39,000 \\ \text { Cost per setup } & \$ 2,000 & \$ 2,000 \end{array} Use of activity-based costing would allocate the following amounts of setup cost to each unit (rounded to the nearest cent): A)Option A B)Option B C)Option C D)Option D E)Option E$
A)Option A
B)Option B
C)Option C
D)Option D
E)Option E

Everlast Co

Multiple Choice

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified