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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.
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 $ 4,320 Supervising $33,040 Other $10,800 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 (Processing) (Supervising) Product MO Product M5 Total 11,400 600 12,000 700 700 1,400 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins
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