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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 Materials handling Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Allocation Base Number of parts Hours of machine time Number of parts Each setup Logged hours Logged hours Costing Rate $ 3.10 per part $23.00 per hour $ 5.10 per part $46.80 per setup $38.00 per hour $23.00 per hour BSI currently sells the A-10 model for $5,590 and the A-25 model for $1,980. Manufacturing costs and activity usage for the two products follow: A-10 Direct materials $145.76 A-25 $61.44 Number of parts 124 95 Machine-hours 6.90 4.60 Inspection time 1.30 0.75 Packing time 0.85 0.46 Setups 40 20