Item2 14/14 points awarded Item Scored ReferencesItem 2 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 $ 40,000 Supervisory expense $ 10,100 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.50 0.20 0.30 Supervisory expense 0.50 0.10 0.40 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: MHs (Machining) Orders (Order Filling) Product W1 5,930 140 Product M0 16,800 965 Total 22,730 1,105 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product W1 Product M0 Sales (total) $ 67,800 $ 62,400 Direct materials (total) $ 31,300 $ 20,800 Direct labor (total) $ 23,000 $ 31,200 What is the product margin for Product W1 under activity-based costing