Bowman Specialists Inc. (BSI) manufactures specialized equipment for polishing optical lenses. There are two models-one (A-25) principally used for fine eyewear and the other (A-10) for lenses used in binoculars, cameras, and similar equipment. The following table shows the manufacturing cost of each unit is calculated, using activity-based costing, for these manufacturing cost pools. Cost Pools Allocation Base Costing Rate Materials handling Number of parts $ 3.00 per part Manufacturing supervision Hours of machine time $22. 80 per hour Assembly Number of parts $ 4.95 per part Machine setup Each setup $46. 60 per setup Inspection and testing Logged hours $35.00 per hour Packaging Logged hours $25. 00 per hour BSI currently sells the A-10 model for $5,850 and the A-25 model for $1,975. Manufacturing costs and activity usage for the two products follow: A-10 A-25 Direct materials $148. 76 $59. 44 Number of parts 123 94 Machine-hours 6. 60 4 . 40 Inspection time 1. 20 0. 70 Packing time 10, 80 0. 44 Setups 42 21 Required: 1. Calculate the product cost and product margin for each product $2 375