Hamblin LLC produces hedge trimmers and has recently adopted activity-based costing. Overhead information was recently gathered with respect to the operation of the stamping machine: machine setups, number of setups, quality control, number of quality control inspections. Total overhead costs for the operation the stamping machine are $120,000 of which $90,000 is setups and $30,000 is quality control. There were 10,000 setups. There were 200 hedge trimmers produced. How much overhead for setups is assigned

Select one:

a. $2000

b. $1800

c. Neither A nor B