Pasternik Company Produces and Sells Two Products, Alpha and Zeta

question 32

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

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Definitions:

Homicide

The act of one human killing another, which can include murder and manslaughter.

Autopsy

An autopsy conducted to determine the reason for demise or the severity of illness.

Genetic Disorder

A disease or condition caused by an abnormality in an individual's DNA, varying from minor to severe in its effects.

Chronic Disease

A long-lasting condition that can be controlled but not cured, often requiring ongoing medical attention and management.