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	$	7,020
Supervising	$	41,040
Other	$	12,400

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	12,825	950
Product M5	675	950
Total	13,500	1,900

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

	Product M0		Product M5
Sales (total)	$	88,700	$	99,900
Direct materials (total)	$	30,500	$	33,400
Direct labor (total)	$	29,800	$	43,700

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

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Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool	Total Activity
Fabrication	45,000	machine-hours
Order processing	200	orders
Other	Not applicable

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries	$	400,000
Depreciation		160,000
Occupancy		180,000
Total	$	740,000

The distribution of resource consumption across activity cost pools is given below:

	Activity Cost Pools
	Fabrication	Order Processing		Other	Total
Wages and salaries	35%	30%		35%	100%
Depreciation	10%	40%		50%	100%
Occupancy	30%	25%		45%	100%

The activity rate for the Order Processing activity cost pool is closest to: