Pasternik Company produces and sells two products, Alpha and Zeta. Thefollowing information is available relating to its setup activities:Units producedBatch size (units)Total direct labor hoursCost per setupA)B)C)D)E)Alpha$140.00$350.00$ 10.42$108.00$ 9.00Zeta$ 7.78Alpha75050Use of activity-based costing would allocate the following amounts of setupcost to each unit: (Rounded to the nearest cent.)$875.64$ 10.50$ 15.00$ 0.097,000$7,000Zeta81,000900115,000$ 7,000

Activity-based costing is used to allocate overhead expenses on the basis of activity. Other than…

Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Units produced Batch size (units) Total direct labor hours Cost per setup Alpha A) $140.00 B) $350.00 C) $ 10.42 AD D) Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.) E $108.00 $9.00 Zeta $ 7.78 Alpha 750 50 $875.64 $ 10.50 $ 15.00 $ 0.09 7,000 $7,000 Zeta 81,000 900 115,000 $ 7,000

Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Units produced Batch size (units) Total direct labor hours Cost per setup Alpha A) $140.00 B) $350.00 C) $ 10.42 AD D) Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.) E $108.00 $9.00 Zeta $ 7.78 Alpha 750 50 $875.64 $ 10.50 $ 15.00 $ 0.09 7,000 $7,000 Zeta 81,000 900 115,000 $ 7,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11EA: Potterii sells its products to large box stores and recently added a retail line of products to sell...

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