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	$ 3,800
Supervising	$ 23,800
Other	$ 10,400

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 M0	9,700	500
Product M5	300	500
Total	10,000	1,000

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

	Product M0	Product M5
Sales (total)	$ 74,100	$ 89,900
Direct materials (total)	$ 28,500	$ 31,400
Direct labor (total)	$ 27,800	$ 41,700

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

Multiple Choice

$38.00 per batch

$7.00 per batch

$23.80 per batch

$14.00 per batch