Tango Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Alpha Zeta Units produced Batch size (units) 400 44,000 20 400 Total direct labor hours 3,000 49,000 Cost per setup $ 3,000 $ 3,000 Use of activity-based costing would allocate the following amounts of setup cost to each unit: (Rounded to the nearest cent.) Alpha $ 150.00 Zeta $ 7.50 $ 900.64 $ 13.00 $ 20.00 $ 0.07 A) $ 375.00 $ 12.92 B) c) $ 110.00 D) E) $ 8.00

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Tango Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities:

|                  | Alpha | Zeta  |
|------------------|-------|-------|
| Units produced   | 400   | 44,000|
| Batch size (units)| 20    | 400   |
| Total direct labor hours | 3,000 | 49,000|
| Cost per setup   | $ 3,000 | $ 3,000 |

Use of activity-based costing would allocate the following amounts of setup cost to each unit: **(Rounded to the nearest cent.)**

|                  | Alpha    | Zeta    |
|------------------|----------|---------|
| A)               | $ 150.00 | $ 7.50  |
| B)               | $ 375.00 | $ 900.64|
| C)               | $ 12.92  | $ 13.00 |
| D)               | $ 110.00 | $ 20.00 |
| E)               | $ 8.00   | $ 0.07  |
Transcribed Image Text:Tango Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: | | Alpha | Zeta | |------------------|-------|-------| | Units produced | 400 | 44,000| | Batch size (units)| 20 | 400 | | Total direct labor hours | 3,000 | 49,000| | Cost per setup | $ 3,000 | $ 3,000 | Use of activity-based costing would allocate the following amounts of setup cost to each unit: **(Rounded to the nearest cent.)** | | Alpha | Zeta | |------------------|----------|---------| | A) | $ 150.00 | $ 7.50 | | B) | $ 375.00 | $ 900.64| | C) | $ 12.92 | $ 13.00 | | D) | $ 110.00 | $ 20.00 | | E) | $ 8.00 | $ 0.07 |
---

**Multiple Choice Question**

Please select one of the following options:

- ☐ Option A
- ☐ Option B
- ☐ Option C
- ☐ Option D
- ☐ Option E

---
Transcribed Image Text:--- **Multiple Choice Question** Please select one of the following options: - ☐ Option A - ☐ Option B - ☐ Option C - ☐ Option D - ☐ Option E ---
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