Help 9:26 PM Luz Mariela 1.2 C | Secure | ht t.htm 5 Mirabile Corporation uses a

Question

Help 9:26 PM Luz Mariela 1.2 C | Secure | ht t.htm 5 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 5,520 Supervising $34,200 $12,000 points Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the Activity data appear below: MHs 10,925 11,500 Batches (Processing) Supervising) Product HO Product M5 Total 750 750 1,500 575 sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Product 45 MO $85,500 $97,900 Sales (total ) Prev 5 of Next

Explanation / Answer

Product M5: Processing 276 =5520/11500*575 Supervising 17100 =34200/1500*750 Total 17376 Product M5 Sales 97900 Less: Direct materials 33000 Direct labor 43300 Overhead 17376 Product Margin 4224 Option 4 is correct

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