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A: $1,818.67 B: $1,654.17 C: $1,520.19 D: $1,266.15 E: $1,341.76 Lens Care Inc. (LC) manufactures specialized equipment for polishing optical lenses. There are two models
A: $1,818.67 B: $1,654.17 C: $1,520.19 D: $1,266.15 E: $1,341.76 Lens Care Inc. (LC) 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: Cost Pools Allocation Base Costing Rate Materials handling Number of parts $ 3.20 per part Manufacturing supervision Hours of machine time $14.88 per hour Assembly Number of parts $ 3.70 per part Machine setup Each setup $56.90 per setup Inspection and testing Logged hours $45.90 per hour Packaging Logged hours $19.90 per hour LCI currently sells the B-13 model for $3,575 and the F-32 model for $3,460. Manufacturing costs and activity usage for the two products are as follows: Direct materials Number of parts Machine hours Inspection time Packaging time Setups B-13 F-32 $164.90 $ 75.92 168 128 8.30 4.28 2.50 1.60 1.30 0.90 5 4 The product cost for model F-32 is
A: $1,818.67
B: $1,654.17
C: $1,520.19
D: $1,266.15
E: $1,341.76
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