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 lemes 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 Base Costing Rate Materials handling Number of parts $ 2.40 per part Manufacturing supervision Hours of machine time $ 14.30 per hour Assembly Number of parts $ 3.30 per part Machine setup Each setup $56.50 per setup Inspection and testing Logged hours $ 45.50 per hour Packaging Logged hours $19.50 per hour LC currently sells the B-13 model for $1775 and the F.32 model for 51220 Manufacturing costs and activity usage for the two products are as follows Direct materials Number of parts Machine hours Inspection time Packaging time Setups 8-13 $164.50 160 7.90 1.70 0.90 3 F-32 $75.60 120 4.20 0.80 0.50 2 The product cost for model 8-13