3. Forrer Company has two products: A and B. The annual production and sales level of Product A is 18,188 units. The annual production and sales level of Product B is 31,652 units. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity in units for each of its three activity cost pools. (Note that the information provided above is the same as that provided for the previous question.)

Activity Cost Pool	Estimated Cost	Expected Activity
		Product A	Product B
Activity 1	$ 80,000	200	800
Activity 2	360,000	600	5,400
Activity 3	58,400	1,000	500

The following information is also available:

Sales price per unit	$100.00
Direct material per unit	20.00
Direct labor per unit	10.00

Compute the total profit[ILP1] margin for Product B using activity-based costing.