Pasternik Company Produces and Sells Two Products, Alpha and Zeta

question 3

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