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 Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Direct materials Number of parts Machine hours Inspection time Packaging time Setups The product cost for model B-13 is: Number of parts Hours of machine time Number of parts Each setup Logged hours Logged hours LCI currently sells the B-13 model for $3,800 and the F-32 model for $3,740. Manufacturing costs and activity usage for the two products are as follows: Allocation Base B-13 $164.95 169 8.35 2.60 1.35 6 F-32 $75.96 Costing Rate $ 3.30 per part $ 14.89 per hour $ 3.75 per part $ 56.95 per setup $45.95 per hour $19.95 per hour 129 4.29 1.70 0.95 5

Lens Core incerporated (lel) monufoctures specialzed equpament for polishing optical lenses. There sre two models-one mairly used for fine eyewear (F-32) and another for lenses used in binoculars cameras, and similarequipment (A139 The manufacturing cast of each unit is calculated using actlvity-based costing, using the following manufacturing cost pools. LCi currenty sels the B.t3 model for $3,900 and the F.32 medel for 53,740 . Manutocturing costs and activity usage for the two groducts are as follows. The product cost for model B.43 is