a. $35,200

b. $7,996

c. -$12,800

d. $23,356

Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools- Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below Overhead costs: Equipment depreciation 92,000 Supervisory expense 4,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Fools Machining Order Filling Equipment depreciation Supervisory expense 0.60 0.30 0.20 0.20 Other 0.20 0.50 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products Activity Orders (Order ) Fi1ling) 4,200 15, 800 20,000 800 200 1,000 Product Wi Product MO Total Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product Product $236,500 $262,000 $ 90,900 123,900 W1 M0 Sales (total Direct materials (total) Direct labor (total $110,400 76,100 What is the product margin for Product W1 under activity-based costing