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:

	MHs (Processing)	Batches (Supervising)
Product M0	11,400	700
Product M5	600	700
Total	12,000	1,400

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

	Product M0		Product M5
Sales (total)	$	78,800	$	91,900
Direct materials (total)	$	28,900	$	31,800
Direct labor (total)	$	28,200	$	42,100

What is the product margin for Product M5 under activity-based costing?

(A) $21,700

(B) $18,000

(C) $1,264

(D) $1,076