Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 (8-13). The manufacturing cost of each unit is calculated using activity-based costing, using the following 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 $2.40 per part $14.80 per hour $3.30 per part $56,50 per setup $45.50 per hour $19.50 per hour LCI currently sells the B-13 model for $1.775 and the F-32 model for $1,220. Manufacturing costs and activity usage for the two products are as follows: B-13 $164.50 160.00 7.90 F-32 $75.60 120.00 4.20 Direct materials Number of parts Machine hours Inspection time Packaging time Setups 1.70 0.80 0.90 3.00 0.50 2.00 To achieve the target cost, Lens Care plans to reduce materials handling costs. How many parts must be removed from F-32 in order to achieve the target cost of $856 for F.32 (round up to whole units)? To achieve the target cost. Lens Care plans to reduce materials handling costs. How many parts must be removed from F-32 in order to achieve the target cost of $856 for F-32 Ground up to whole units)? @46 53 38 34 22

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

14th Edition

1292209178, 9781292209173

More Books

Students also viewed these Accounting questions