Lens Care Incorporated (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 handling Allocation Base Costing Rate Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Number of parts Number of parts Hours of machine time $ 4.10 per part $ 14.97 per hour $ 4.15 per part $ 57.35 per setup $ 46.35 per hour Each setup Logged hours Logged hours $ 20.35 per hour LCI currently sells the B-13 model for $5,600 and the F-32 model for $5,980. Manufacturing costs and activity usage for the two products are as follows: Direct materials Number of parts Machine hours Inspection time Packaging time Setups B-13 $ 165.35 F-32 $ 76.28 177 137 8.75 4.37 3.40 2.50 1.75 1.35 2