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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. The costs in those activity cost pools appear below:
Processing $ 4,900
Supervising $34,200
01:54:18
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)
Product Me
13,300
900
Product M5
700
900
Total
14,000
1,800
Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.
Product Me Product MS
Sales (total)
$ 81,000 $ 93,900
Direct materials (total)
$ 29,300 $ 32,200
Direct labor (total)
$ 28,600 $ 42,500
The activity rate for the Supervising activity cost pool under activity-based costing is closest to
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