Roshannon Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment expense and indirect labor-to three activity cost pools-Processing, Supervising, and Other-based on resource consumption. Data to perform these allocations appear below:

Overhead costs:

Equipment expense	$52,000
Indirect labor	$8,000

Distribution of resource consumption across activity cost pools:

	Activity Cost Pools
	Processing	Supervising	Other
Equipment expense	0.20	0.30	0.50
Indirect labor	0.40	0.40	0.20

In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

	MHs (Processing)	Batches (Supervising)
Product P3	8,700	600
Product G0	11,300	1,400
Total	20,000	2,000

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

Sales and Direct Cost Data:

	Product P3	Product G0
Sales (total)	$140,100	$121,500
Direct materials (total)	47,500	56,400
Direct labor (total)	78,200	37,700

1. How much overhead cost is allocated to the Processing activity cost pool under activity-based costing in the first stage of allocation?

	A.	$3,200
	B.	$13,600
	C.	$27,600
	D.	$10,400