Reference no: EM132997261

Question - 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 $5,880

Supervising $33,600

Other $12,100

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:

MHs (Processing) Batches (Supervising)

Product M01 1,400 800

Product M5 600 800

Total 12,000 1,600

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

Product M0 Product M5

Sales (total) $86,300 $98,400

Direct materials (total) $30,200 $33,100

Direct labor (total) $29,500 $43,400

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