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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 4,900 Supervising $34,200 other $11,200 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 MHs (Processing) (Supervising) 13,300 700 Product MO Product M5 Total 900 14,000 1,800 Prey 10f 10 Next> Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product M0 Product M5 $ 81,000 $ 93,900 29,300 32,200 $ 28,600 42,500 The activity rate for the Supervising activity cost pool under activity-based costing is closest to: Multiple Choice $21.72 per batch Prey 1 of 10 Next >
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