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What is the overhead cost assigned to Product M5 under activity-based costing? Mirabile Corporation...

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Accounting

imageWhat is the overhead cost assigned to Product M5 under activity-based costing?

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 $ 5,265 Supervising $34,340 Other $11,100 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: Product MO Product M5 MHS (Processing) 12,800 700 13,500 Batches (Supervising) 850 850 1,700 Total 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 $ 81,200 $ 29,200 $ 28,500 Product M5 $ 93,400 $ 32,100 $ 42,400

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