Pasternik Company Produces and Sells Two Products, Alpha and Zeta

Multiple Choice

Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: $\begin{array}{lrr} & \text { Alpha } & \text { Zeta } \\\text { Units produced } & 250 & 20,000 \\\text { Batch size (units) } & 10 & 500 \\\text { Total direct labor hours } & 1,000 & 39,000 \\\text { Cost per setup } & \$ 2,000 & \$ 2,000\end{array}$ With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent) :

A) Option A
B) Option B
C) Option C
D) Option D
E) Option E