Answer:
$9,332
Step-by-step explanation:
The computation of the product margin under activity based costing is shown below:
= Sales - direct material cost - direct labor cost - processing cost - supervising cost
where,
Processing = ($5,945 ÷ 14,500 machine hours) × 800 machine hours
= $328
And,
Supervising = ($19,680 ÷800 batches) × 400 batches
= $9,840
So, the product margin is
= $94,400 - $32,300 - $42,600 - $328 - $9,840
= $9,332