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:

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 $35,000 Supervisory expense $15,800 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Order Filling Equipment depreciation Supervisory expense 0.60 0.60 0.30 0.20 Other 0.10 0.20 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 Filling) MHs (Machining) Product W1 5,760 112 Multiple Choice $6,624 $30,480 $8,002 $1,378