Brisky 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:
Activity Cost Pools
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.
27350
1137
Finally sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
What is the product margin for Product I3 under activity-based costing? (Round your intermediate calculations
to 2 decimal places and final answer to the nearest dollar amount.)