Goldman Company has identified the following activities related to indirect production costs:

Activity Activity Cost Cost Drivers

Machine Setup $180,000 1,500 Setup Hours

Materials Handling $50,000 12,500 Pounds of Materials

Electric Power $20,000 20,000 Kilo-watts hours

Product A Product B

Number of units produced 4,000 20,000

Direct materials cost $20,000 $25,000

Direct labor cost $12,000 $20,000

Number of setup hours $100 $120

Pounds of material used $500 $1,500

Kilo-watt hours $1,000 $2,000

Using activity-based costing, how much of the machine setup cost will be assigned to Product A?

A.$25,000

B.$20,000

C.$20

D.$12,000