Lens Care Inc. C manufactures specialized equipment for polishing optical lenses. There are two models- one mainly used for fine eyewear (6-32) and another for lenses used in binoculars, cameras, and similar equipment (8-13) The manufacturing cost of each unit is calculated using activity-based costing using the following manufacturing cost pools: Cost Pools Allocation Bane Conting Rate Materials handling Number of parts $ 3.40 per part Manufacturing supervision Hours of machine time $14.90 per hour Assembly Number of parts $ 3.80 per part Machine setup Each setup $57.00 per setup Inspection and testing Logged hours $46.00 per hour Packaging Logged hours $20.00 per hour LCI currently sells the B-13 model for $4,025 and the F-32 model for $4.020. Manufacturing costs and activity usage for the two products are as follows: Direct materials Number of parts Machine hours Inspection time Packaging time Setup 3-13 7-32 $165.00 76.00 170 130 8.40 4.30 2.70 1.80 1.00 3 The product cost for model F-32 Me Choice $1826 516622 & Prev 36H Next > The product cost for model 32 is: Multiple Choice $1,826.78. $1.662.28. $1,528.30. $1.274 27 $1,349.87