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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

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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 .ctivity cost pools-Machining Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below Overhead costs: Equipment depreciation $48,000 Supervisory expense $ 6,500 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation Supervisory expense 0.40 0.30 0.40 0.20 0.40 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 MAS Orders (Order Pilling) Product W Product MO Total (Machining 5,890 22.800 28,690 1,150 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Directo: Data: Product W1 $59,400 Product MO $65,000 Sales (total) Direct materials (total) Direct labor (total) $29,700 $20,300 $15,600 $34,200 What is the overhead cost assigned to Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places and dollar amount.) Multiple Choice 54.476 $6,674 Oo oo O $21,800 $2998

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