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  3. pasternik company produces and sells two products,

Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available...

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Accounting

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Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup a Alpha Units produced Batch size (units) Total direct labor hours Cost per setup 190 14,730 370 28,170 $1,510 710 $1,380 Use of activity-based costing would allocate the following amounts of setup cost to each unit (rounded to the nearest cent): TC $7.00 $7.78 $9.78 $5.00 $7.39 ABC A) B) C) D) E) $6.02 $83.80 $85.80 $4.02 $44.91 Assume the cost per setup remains at $1,510 but that the batch size for product Alpha is changed from 7 to 18 units per batch Using activity-based and a volume-based overhead costing that uses direct labor-hours to assign overhead, the amount of setup cost applied to each unit of product Alpha would be (rounded to the nearest cent): Option E Option B Option C Option A Option D

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