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Teed Off makes steel and graphite shafts for golf clubs. It requires approximately 2 hours of labor to make one shaft of either kind. During the year, the company made 12,000 graphite shafts and 8,000 steel shafts. Setup costs amounted to $62,000 for 36 total batches (20 for graphite and 16 for steel). What is the amount of setup cost assigned to the graphite shafts if activity-based costing is used?
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