Roshannon Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment expense and indirect labor-to three activity cost pools- Processing, Supervising, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead cost: Equipment expense....... $52,000 Indirect labor........ $8,000 Distribution of Resource Comsumption Acrss Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense........... Indirect labor... 0.20 0.40 0.30 0.40 0.50 0.20 In the second stage, 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 for the company's two products follow: Activity: Product P3...... Product GO...... Total............... MHs (Processing) 8,700 11,300 20,000 Batches (Supervising) 600 1,400 2,000 The activity rate for the Processing activity cost pool under activity-based costing is closest to: A. $5.33 per MH B. $0.68 per MH C. $0.52 per MH D. $3.00 per MH E. Unsure of correct answer