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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: 8 Overhead costs: Equipment
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts: 8 Overhead costs: Equipment depreciation Supervisory expense $ 103,eee $ 13,100 Distribution of Resource Consumption Across Activity Cost Pools: 5 points 8 01.03.20 Machining 0.60 .60 Equipment depreciation Supervisory expense Activity Cost Pools Order Filling 8.20 8.10 Other 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHS) 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: Product w1 Product Me Total MHS (Machining) 6,270 18,888 25,870 Orders (Order Filling) 104 984 1,888 Sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Sales (total) Direct materials (total) Direct labor (total) Product W1 $ 73,700 $ 34,300 $ 18,888 Product Me $ 67,500 $ 15,280 $ 34,800 What is the product margin for Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice o 57.565 $7,565 $1.875 $6.435 $2,655
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