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