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$103,000?Supervisory expense$13,100?Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools MachiningOrder FillingOtherEquipment depreciation0.60?0.20?0.20?Supervisory expense0.60?0.10?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.Activity: MHs(Machining)Orders(Order Filling)Product W16270?104?Product M018,800?984?Total25,070?1088??Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.Sales and Direct Cost Data: Product W1Product M0Sales (total)$73,700?$67,500?Direct materials (total)$34,300?$15,200?Direct labor (total)$18,000?$34,800?What is the overhead cost assigned to Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar amount.)
A. $19,525
B. $69,660
C. $17,431
D. $2095
Answer: A
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