Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated...
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Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and other. The costs in those activity cost pools appear below: Processing Supervising $ 5,945 $19,680 $11,300 Other 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 appear below: Product Me Product M5 Total MHS (Processing) 13,700 800 14,500 Batches (Supervising) 400 400 800 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product Product MO M5 $81,800 $94,400 $ 29,400 $32,300 $28,700 $42,600 What is the product margin for Product M5 under activity-based costing? Multiple Choice $23,700 $19,500 $9,332 $8,243
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