Quint Manufacturing uses an activity-based costing system. The company produces Model 1 and Model 2. Information relating to the two products is as follows:

	Model 1	Model 2
Units produced	24,000	30,000
Machine hours	7,500	8,500
Direct labour hours	8,000	12,000
Material handling (number of moves)	4,000	6,000
Setups	5,000	7,000

The following costs are reported:

Material handling	40,000
labour-related overhead	120,000
Setups	60,000

Setup costs assigned to Model 2 are

a.

28,000.

b.

25,000.

c.

35,000.

d.

36,000.