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

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
A)
B)
C)
D)
E)
Alpha
$140.00
$350.00
$ 10.42
$108.00
$ 9.00
Zeta
$ 7.78
Alpha
750
50
Use of activity-based costing would allocate the following amounts of setup
cost to each unit: (Rounded to the nearest cent.)
$875.64
$ 10.50
$ 15.00
$ 0.09
7,000
$7,000
Zeta
81,000
900
115,000
$ 7,000
Transcribed Image Text: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 A) B) C) D) E) Alpha $140.00 $350.00 $ 10.42 $108.00 $ 9.00 Zeta $ 7.78 Alpha 750 50 Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.) $875.64 $ 10.50 $ 15.00 $ 0.09 7,000 $7,000 Zeta 81,000 900 115,000 $ 7,000
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