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Stroth Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and

Stroth Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below:

Machining $5,400

Order filling $2,500

Other $13,100

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 data appear below:

MHs (Machining) Orders (Order filling)

Product C4 9,800 500

Product L4 200 500

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Product C4 Product L4

Sales (total) $46,900 $25,300

Direct materials (total) $15,100 $11,500

Direct labor (total) $22,300 $10,900

What is the product margin for Product C4 under activity-based costing?

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