Help Save & Exit Sub 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 Filling, and Other-- based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 73,000 $ 10,900 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.30 0.10 Supervisory expense 0.60 @.20 0.20 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) 114 MHS (Machining) 5,720 16 CAA Product W1 DAM QR In the second stage. Machining costs are assigned to products using machine hours (MHs) and Order Filing costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products Activity ed Orders (Order Filling) 114 Product W1 Product MD Total MHS (Machining) 5,720 16,500 22,220 980 1,094 Finally, sales and direct cost data are combined with Machining and Order Filing costs to determine product margins Sales and Direct Cost Data: Sales (total) Direct materials (total) Direct labor (total) Product wi $ 78,500 $ 34,700 $ 21,600 Product MO $ 63,600 $ 23,500 $ 34,800 What is the product margin for Product W1 under activity based costing (Round your intermediate calculations to 2 decimal places) Multiple Choice a $2,734 $6,706 $11,266 $7,486 10