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 $ 5,265 Supervising $34, 340 Other $11, 100 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 Batches ( Processing) ( Supervising ) Product MO 12 , 800 850 Product M5 700 850 Total 13 , 500 1, 700 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Product MO M5 Sales (total) $ 81, 200 $ 93 , 400 Direct materials (total) $ 29 ,200 $ 32 , 100 Direct labor (total) $ 28,500 $ 42, 400 The activity rate for the Supervising activity cost pool under activity-based costing is closest to