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 applied overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent): Alpha: 13.00 Zeta: 6.34 Alpha: 3.25 Zeta 3.25 Alpha: 8.00 Zeta: 0.10 Alpha: 102.00 Zeta 49.73

FINANCIAL ACCOUNTING
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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 applied overhead
based on direct labor hours, the setup cost
portion of overhead for each unit is
(rounded to the nearest cent): Alpha: 13.00
Zeta: 6.34 Alpha: 3.25 Zeta 3.25 Alpha: 8.00
Zeta: 0.10 Alpha: 102.00 Zeta 49.73
Transcribed Image Text: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 applied overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent): Alpha: 13.00 Zeta: 6.34 Alpha: 3.25 Zeta 3.25 Alpha: 8.00 Zeta: 0.10 Alpha: 102.00 Zeta 49.73
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