Question $8$

The controller of Sensor Co$.,$ implementing the ABC system in the assembly department, identifies the following three cost pools and cost drivers:

Cost pool

Costs

Cost driver

Product A

Product B

Setup of machines

$10,000$

Number of setups

$40$

$60$

Parts assembly

$20,000$

Number of parts

$150$

$250$

Receiving and handling of materials

$20,000$

Pounds of materials

$5$

$5$

Total overhead

$50,000$

What is the cost of machine setups for product A$?$