Carriage Manufacturing Uses an Activity-Based Costing System Setup Costs Assigned to Model 22 Are
A)$36,000

Multiple Choice

Carriage Manufacturing uses an activity-based costing system. The company produces Model 21 and Model 22. Information relating to the two products is as follows: $\begin{array}{lrr}&\text { Model 21 }&\text {Model 22 }\\\hline\text { Units produced } & 24,000 & 30,000 \\\text { Machine hours } & 7,500 & 8,500 \\\text { Direct labor hours } & 8,000 & 12,000 \\\text { Material handling (number of moves) } & 4,000 & 6,000 \\\text { Setups } & 5,000 & 7,000\\\text { The following costs are reported: }\\\\\text { Material handling } && \$ 40,000 \\\text { Labor-related overhead } && 120,000 \\\text { Setups } && 60,000\\\end{array}$
Setup costs assigned to Model 22 are

A) $36,000.
B) $35,000.
C) $28,000.
D) $25,000.