43.) Lens Care Inc. (LCI) manufactures specialized equipment forpolishing optical lenses. There are two models - one mainly usedfor 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 usingactivity-based costing, using the following manufacturing costpools:
| Cost Pools | Allocation Base | Costing Rate |
| Materials handling | Number of parts | $ | 2.90 | per part |
| Manufacturing supervision | Hours of machine time | $ | 14.85 | per hour |
| Assembly | Number of parts | $ | 3.55 | per part |
| Machine setup | Each setup | $ | 56.75 | per setup |
| Inspection and testing | Logged hours | $ | 45.75 | per hour |
| Packaging | Logged hours | $ | 19.75 | per hour |
|
LCI currently sells the B-13 model for $2,900 and the F-32 modelfor $2,620. Manufacturing costs and activity usage for the twoproducts are as follows:
| B-13 | | F-32 |
| Direct materials | $ | 164.75 | | | $ | 75.80 | |
| Number of parts | | 165 | | | | 125 | |
| Machine hours | | 8.15 | | | | 4.25 | |
| Inspection time | | 2.20 | | | | 1.30 | |
| Packaging time | | 1.15 | | | | 0.75 | |
| Setups | | 6 | | | | 5 | |
|
The product cost for model B-13 is:
Multiple Choice
$1,813.89.
$1,649.39.
$1,515.41.
$1,261.38.
$1,336.98.
44.) Lens Care Inc. (LCI) manufactures specialized equipment forpolishing optical lenses. There are two models - one mainly usedfor 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 usingactivity-based costing, using the following manufacturing costpools:
| Cost Pools | Allocation Base | Costing Rate |
| Materials handling | Number of parts | $ | 3.60 | per part |
| Manufacturing supervision | Hours of machine time | $ | 14.92 | per hour |
| Assembly | Number of parts | $ | 3.90 | per part |
| Machine setup | Each setup | $ | 57.10 | per setup |
| Inspection and testing | Logged hours | $ | 46.10 | per hour |
| Packaging | Logged hours | $ | 20.10 | per hour |
|
LCI currently sells the B-13 model for $4,475 and the F-32 modelfor $4,580. Manufacturing costs and activity usage for the twoproducts are as follows:
| B-13 | | F-32 |
| Direct materials | $ | 165.10 | | | $ | 76.08 | |
| Number of parts | | 172 | | | | 132 | |
| Machine hours | | 8.50 | | | | 4.32 | |
| Inspection time | | 2.90 | | | | 2.00 | |
| Packaging time | | 1.50 | | | | 1.10 | |
| Setups | | 5 | | | | 4 | |
|
If the market price for B-13 and F-32 are reduced to $4,395 and$4,455 respectively, and Lens Care wants to maintain market shareand profitability, what is the target cost for B-13 and F-32 (roundto nearest whole dollar)?
| B-13 | | F-32 |
| A) | $ | 654.00 | | | $ | 613.00 | |
| B) | $ | 1,952.00 | | | $ | 618.00 | |
| C) | $ | 892.00 | | | $ | 1,349.00 | |
| D) | $ | 1,952.00 | | | $ | 1,349.00 | |
| E) | $ | 892.00 | | | $ | 915.00 | |
|
Multiple Choice
Option A
Option B
Option C
Option D
Option E
45.) Bryan Inc. produces a specialty top-quality juice machine.The product, the JM50, requires four processes to be completed.Specifically, these processes are exterior construction, pulpfilter insertion, painting, and packaging. Each process isperformed at separate workstations with different completionrates:
Exterior construction can manufacture 108,000 juicer exteriors perday.
Pulp filter insertion can install 27,000 filters every 6hours.
Painting can decorate 3,040 juicers every half hour.
Packaging can package 5,040 juicers per hour.
The plant operates 24/7, 24 hours a day every day of theweek.
How many JM50 machines can Bryan Inc. manufacture per month (assumean average 30-day month)?
Multiple Choice
4,560,000 juicers.
3,840,000 juicers.
3,240,000 juicers.
3,440,000 juicers.
