5 STARS rating

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 $ 4,180 Supervising $24,200 Other $11,600 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 MHS Batches (Processing) (Supervising) Product MO Product M5 9,025 475 9,500 550 550 1,100 Total Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins Product Product MO M5 Sales (total) Direct materials (total) 29,700 $32,600 Direct labor (total) $82,300 $95,900 $29,000 $42,900