XCO Question 3 Mirabile Corporation uses activity-based costing to computer 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 $ 3870 Supervising $ 25,000 Other $ 11,500 Processing costs are assigned to products using machine-hours (MH) 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 MO 8500 500 Product M5 500 500 Total 9000 1000 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 MO Product M5 $81,500 $95.400 $29,600 $32,500 $28.900 $42.800 The activity rate for the Supervising activity cost pool under activity-based costing is closest to $7.74 per batch hp 3 5 & 7 6 8 9