In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17.500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product A Product B Total $251,700 $436,300 $200,000 $14 , Direct materials Direct labor Manufacturing overhead Cost of goods sold $ 688,000 304, eee 608, eee $1,6ee, eee $, The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 213,500 157,500 12 120,000 117, eee Product Product B Total 90, eee 62,508 152,5ee 75 375 1 1 2 NA NA NA $ 608,000 The company's ABC implementation team also concluded that $33,500 and $116.500 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400.000) was organization-sustaining in nature. The company's activity-based costing system would report a product margin for Product A of: O O $512,700 $562,700 O $542,700 O $531,700