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Business, 13.03.2020 04:43 thulani2

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: MHs (Processing) Batches (Supervising) Product M0 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 M0 Product M5 Sales (total) $ 81,000 $ 93,900 Direct materials (total) $ 29,300 $ 32,200 Direct labor (total) $ 28,600 $ 42,500 What is the product margin for Product M5 under activity-based costing?

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