Assume a company produces and sells only two products $-14,000$ units of Product A and $6,000$ units of Product $B.$ The selling prices are $$65$ per unit for roduct A and $$96$ per unit for Product B$.$ Product A$\text{'}$s direct materials and direct labor costs per unit are $$30$ and $$12,$ respectively. Product B$\text{'}$s direct naterials and direct labor costs per unit are $$34$ and $$15,$ respectively. The company is considering implementing an activity$-$based costing $($ABC$)$ system nat allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for roducts A and $B$ :

$\backslash$table$[[,$Estimated$],[,,$Overhead,$],[$Activity Cost Pool,Activity Measure,Cost,Expected Activity$],[$Machining$,$Machine$-$hours,$$300,000,15,000$ MH$],[$Machine setups,Number of setups,$$150,000,200$ Setups$],[$roduct design,Number of products,$$78,000,2$ Products$]]$

$\backslash$table$[[$ctivity Measure,Product A$,$Product B$],[$achine$-$hours,$9,000,6,000],[$umber of setups,$50,150],[$umber of products,$1,1]]$

g the ABC system, what is the product margin for Product $B?$

Multiple Choice

$$20,500$