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:

Model 21Model 22Units produced24,00030,000Machine hours7,5008,500Direct labor hours8,00012,000Material handling (number of moves)4,0006,000Setups5,0007,000

The following costs are reported:

Material handling$ 40,000Labor-related overhead120,000Setups60,000

Setup costs assigned to Model 22 are

a.$36,000.

b.$25,000.

c.$28,000.

d.$35,000.