Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities:     Alpha Zeta Units produced   250     20,000   Batch size (units)   10     500   Total direct labor hours   1,000     39,000   Cost per setup $ 2,000   $ 2,000       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.)     Alpha Zeta A) $ 3.25   $ 3.25   B) $ 13.00   $ 6.34   C) $ 8.00   $ 0.10   D) $ 25.50   $ 25.50   E) $ 102.00   $ 49.73

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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:

 

  Alpha Zeta
Units produced   250     20,000  
Batch size (units)   10     500  
Total direct labor hours   1,000     39,000  
Cost per setup $ 2,000   $ 2,000  
 

 

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.)

 

  Alpha Zeta
A) $ 3.25   $ 3.25  
B) $ 13.00   $ 6.34  
C) $ 8.00   $ 0.10  
D) $ 25.50   $ 25.50  
E) $ 102.00   $ 49.73  
 

 

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