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Help Save & Exit Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost
Help Save & Exit 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 Other $ 5,170 $ 31,640 $ 11,900 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: Batches (Supervising) 700 700 MHS (Processing) 10,400 600 Product Me Product M5 Total 11,000 1,400 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 MO $ 84,700 $ 30,000 $ 29, 300 Product M5 $ 97,400 $ 32,900 $ 43,200 What is the product margin for Product M5 under activity-based costing? ultiple Choice $21,300 $25,400 $5,198 $4,692
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