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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 lDther.
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 lDther. The costs in those activity cost pools appear below: Processing $ 3,158 Supervising $25,388 UthEP $13,539 ' Processing costs are assigned to products using machinehours [MHs} and Supervising costs are assigned to products using the number of batches. The costs in the lEither activity cost pool are not assigned to products. Activity data appear below: MHs Batches (Processing) {Supervising} Product M8 9,938 558 Product M5 688 558 Total 19,599 1,199 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Product M9 H5 Sales (total) $94,999 $99,499 Direct materials {total} $28,688 $31,588 Direct labor {total} $2?,988 $41,888 What is the product margin for Product M5 under activitybaaed costing? Multiple Ch nice 0 $13,496 $11109 $339 0 0 $4,2?0 0
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