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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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