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 Fling, and other based on resource consumption. Data to perform these allocations appear below. Overhead costs: Equipment depreciation $ 91,000 Supervisory expense $ 12,300 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.30 0.10 Supervisory expense 0.60 9.20 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: MHS (Machining) 6,050 Orders (Order Filling) 198 990 Product W1 DAM 31 RAG Product W1 Product Me Total MHS (Machining) 6,050 21,800 27,850 Orders (Order Filling) 198 999 1,197 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product W1 Product Me Sales (total) $ 73,000 $ 69,800 Direct materials (total) $ 30,800 $ 18,500 Direct labor (total) $ 16,600 $ 30,600 What is the product margin for Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places. Multiple Choice $2,254 $7,186 $11,746 $7.966