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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 activity cost pools-Machining. Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below. Overhead costs: Equipment depreciation Supervisory expense $51,000 $11,300 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order 11 0.50 0.50 Equipment depreciation Supervisory expense Other 0.30 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 Orders (Order Pilling) 199 981 MHS (Machining) 5,630 18,600 24,230 Product wi Product MO Total 1,180 Orders (Order Filling) 199 MHS (Machining) 5,630 18,600 24,230 Product wi Product MO Total Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product Sales (total) Direct materials (total) Direct labor (total) $66,210 $31,700 $19,000 Product MO $65,900 $22,200 $27,800 What is the product margin for Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 103 Prev 1 of 12 Next > $10,897 $6,337 S7117

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