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Brisky 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

Brisky 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

$22,000

Supervisory expense

$6,000

Distribution of Resource Consumption across Activity Cost Pools

Activity Cost Pools:

Machining

Order Filling

Other

Equipment depreciation

50%

30%

20%

Supervisory expense

50%

20%

30%

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:

MHs (Processing)

Batches (Supervising)

Product I3

5,400

100

Product U8

14,600

900

Total

20,000

1,000

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Sales and Direct Cost Data:

Product I3

Product U8

Sales (total)

$53,300

$60,100

Direct materials (total)

$29,700

$14,000

Direct labor (total)

$16,000

$25,300

What is the overhead cost assigned to Product I3 under activity-based costing?

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