Question

Pasternik Company produces and sells two products, . 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/hr 1,000 39,000

Cost per set up 2000 2000

Assume the cost per setup remains at $2,000 but that the batch size for product Alpha is changed from 10 to 25 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: 

I need help on step by step to solve this problem

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