Help Save & Exit su 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 Filing, and Other--based on resource consumption. Data to perform these allocations appear below Overhead costs: Equipment depreciation Supervisory expense $98,000 $13,400 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Order Filling Equipment depreciation 0.60 0.20 Supervisory expense 0.60 0.10 Other 0.20 0.30 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. 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 Orders (Order Filling) MHS (Machining) 6,860 14,700 20,760 Product W1 Product Me Total 112 975 1,087 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Sales (total) Direct materials (total) Product W1 $83,550 $38,500 Product MO $68,400 $22,400 Sales (total) Direct materials (total) Direct labor (total) Product W1 $83,550 $38,500 $22,000 Product MO $68,400 $22,400 $33,700 What is the product margin for Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice 58060 $1,380 Multiple Choice $8,060 $1,380 $5,940 $2,160