Happy 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. The overhead costs are $64,000 for Equipment depreciation and $4,000 for Supervisory Expense. The distribution of resource consumption across the activity pools is: Machining Order-filling Equipment Depreciation Supervisory Expense 0.50 0.10 Other 0.30 0.20 0.10 0.80 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. Product 16 Product E9 MHs (Machining) Orders (Order-filling) 7,600 12,400 600 400 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product 16 Product E9 Sales (total) $182,400 $ 147,800 Direct Material (total) $ 93,700 $ 46,800 $52,700 $ 65,300 Direct Labor (total) What is the product margin for Product 16 under activity-based costing? $36,000 $2,000 O $11,928 $23.688