Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 Allocation Base Costing Rate Materials handling Mumber of parts 3.90 per part Manufacturing supervision Hours of machine time 14.95 per hour Assembly Number of parts $ 4.05 per part Machine setup Each setup $ 57.25 per setup Inspection and testing Logged hours $ 46.25 per hour Packaging Logged hours 208.25 per hour LCI currently sells the B-13 model for $5,150 and the F-32 model for $5,420. Manufacturing costs and activity usage for the two products are as follows: B-13 F-32 Direct materials $ 165.25 76.20 Number of parts 175 135 Machine hours 8.65 4.35 Inspection time 3.20 2.30 Packaging time 1.65 1.25 Setups 6 5 The product cost for model B-13 is

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

Accounting Principles Managerial Concepts

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

7th Canadian Edition

1119310296, 978-1119310297

More Books

Students also viewed these Accounting questions

Question

What are your current research studies?

Answered: 1 week ago

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago