Lens Care Inc. (LCI) 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 (B-13). The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools: Cost Pools Materials handlig Costing Rate Allocation Base Number of parts $ 2.40 per part Manufacturing supervision Hours of machine time $ 14.80 per hour Assembly Number of parts $ 3.30 per part Machine setup Inspection and testing Packaging Each setup Logged hours. Logged hours $ 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 Direct materials $164.50 F-32 $ 75.60 Number of parts 160 120 Machine hours 7.90 4.20 Inspection time 1.70 0.80