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 $ $5,520$

Supervising $ $34,200$

Other $ $12,000$

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 $($Processing$)$ Batches $($Supervising$)$

Product M$010,925750$

Product M$5575750$

Total $11,5001,500$

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

Product M$0$ Product M$5$

Sales $($total$)$ $ $85,500$ $ $97,900$

Direct materials $($total$)$ $ $30,100$ $ $33,000$

Direct labor $($total$)$ $ $29,400$ $ $43,300$

What is the product margin for Product M$5$ under activity$-$based costing?those activity cost pools appear below:

products. Activity data appear below:

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

What is the product margin for Product M$5$ under activity$-$based costing?

Multiple Choice