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Addleman Corporation has an activity - based costing system with three activity cost pools - - Processing, Supervising, and Other. In the first stage allocations,

Addleman Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Overhead costs:
Equipment expense $ 73,000
Indirect labor $ 1,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Processing Supervising Other
Equipment expense 0.200.100.70
Indirect labor 0.200.200.60
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Processing) Batches (Supervising)
Product W37,600100
Product H32,400900
Total 10,0001,000
Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.
Sales and Direct Cost Data:
Product W3 Product H3
Sales (total) $159,500 $154,100
Direct materials (total) $ 66,300 $ 55,300
Direct labor (total) $ 77,800 $ 84,100
How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing?
Multiple Choice
$7,300
$51,700
$7,500
$200

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