$18$

Lens Care Incorporated $(LCI)$ manufactures specialized equipment for polishing optical lenses. There are two models $-$ one mainly used for fine eyewear $($F$-32)$ and another for lenses used in binoculars, cameras, and similar equipment $($B$-13).$

The manufacturing cost of each unit is calculated using activity$-$based costing, using the following manufacturing cost pools:

$04$:$11$:$40$

$\backslash$table$[[$Cost Pools,Allocation Base,Costing Rate$],[$Materials handling,Number of parts,$$4\mathrm{.}10$ per part$],[$Manufacturing supervision,Hours of machine time,$$14\mathrm{.}97$ per hour$],[$Assembly$,$Number of parts,$$4\mathrm{.}15$ per part$],[$Machine setup,Each setup,$$57\mathrm{.}35$ per setup$],[$Inspection and testing,Logged hours,$$46\mathrm{.}35$ per hour$],[$Packaging$,$Logged hours,$$20\mathrm{.}35$ per hour$]]$

LCl currently sells the B$-13$ model for $$5,600$ and the F$-32$ model for $$5,980.$ Manufacturing costs and activity usage for the two products are as follows:

$\backslash$table$[[,$B$-13,$F$-32],[$Direct materials,$$165\mathrm{.}35,$$$76\mathrm{.}28$