Answer:
$380,000
Explanation:
Particulars                                           Product 1 (Amount)
Sales                                                          $1,400,000
(-) Direct materials                                   ($200,000)
(-) Direct labor                                          ($600,000)
<u>(-) Manufacturing overhead
</u>
Batch level ($400,000*20/80)                 ($100,000)
Product line level ($600,000*10/50)       <u>($120,000)</u>
Gross margin                                            <u>$380,000</u>
So, Dakota Company's gross margin for Product 1 using activity based costing is $380,000