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Sunflower, Inc. uses activity-based costing. The company produces two products, A and B. Information relating...

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Accounting

Sunflower, Inc. uses activity-based costing. The company produces two products, A and B. Information relating to the two products is as follows:

A B
Units produced 19,000 25,000
Machine-hours 7,500 8,500
Direct labor-hours 8,000 12,000
Materials handling (number of moves) 4,000 6,000
Setups 5,000 7,000

The following total costs are reported:

Materials handling $160,000
Labor-related overhead $480,000
Setups $300,000

Setup costs assigned to B are:

Select one:

a. $144,000

b. $140,000

c. $112,000

d. $175,000

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