Thomas, Inc. uses activity-based costing. The company produces two products, 001 and 002.

Estimated overhead costs for the year are:

Materials handling	$320,000
Labor-related overhead	960,000
Setups	600,000
Estimated activities for the year are:
Machine-hours	32,000
Direct labor-hours	40,000
Materials handling (number of moves)	20,000
Setups	24,000

Information about the two products:

	001	002
Units produced	38,000	50,000
Machine-hours	15,000	17,000
Direct labor-hours	16,000	24,000
Materials handling (number of moves)	8,000	12,000
Setups	10,000	14,000

Setup costs assigned to 002 are