Lake Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs: Equipment expense... $96000

Indirect labor... $4000

Distribution of resource consumption across activity cost pools:

Equip. expense... processing 0.4 supervising 0.2 other 0.4

indirect labor... processing 0.3 supervising 0.5 other 0.2 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 R4.... 6800 400

Product L2.... 13200 600

Total.... 20000 1000 Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.

Sales and direct cost data: Product R4 Product L2

Sales (total).... $234600 $269600

Direct materials (total).... $81100 $120200

Direct labor (total).... $116600 $93200

What is the overhead cost assigned to Product L2 under activity-based costing?

		$50,000
		$26,136
		$12,720
		$38,856