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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 Number of parts $ $4\mathrm{.}20$ per part

Manufacturing supervision Hours of machine time $ $14\mathrm{.}98$ per hour

Assembly Number of parts $ $4\mathrm{.}20$ per part

Machine setup Each setup $ $57\mathrm{.}40$ per setup

Inspection and testing Logged hours $ $46\mathrm{.}40$ per hour

Packaging Logged hours $ $20\mathrm{.}40$ per hour

LCI currently sells the B$-13$ model for $$5,825$ and the F$-32$ model for $$6,260.$ Manufacturing costs and activity usage for the two products are as follows:

B$-13$ F$-32$

Direct materials $ $165\mathrm{.}40$ $ $76\mathrm{.}32$

Number of parts $178138$

Machine hours $8\mathrm{.}804\mathrm{.}38$

Inspection time $3\mathrm{.}502\mathrm{.}60$

Packaging time $1\mathrm{.}801\mathrm{.}40$

Setups $43$

If the market price for B$-13$ and F$-32$ are reduced to $$5,745$ and $$6,135$ respectively, and Lens Care wants to maintain market share and profitability, what is the target cost for B$-13$ and F$-32($round to nearest whole dollar$)?$

B$-13$ F$-32$

A$)$ $ $843\mathrm{.}00$ $ $762\mathrm{.}00$

B$)$ $ $2,141\mathrm{.}00$ $ $767\mathrm{.}00$

C$)$ $ $1,081\mathrm{.}00$ $ $1,498\mathrm{.}00$

D$)$ $ $2,141\mathrm{.}00$ $ $1,498\mathrm{.}00$

E$)$ $ $1,081\mathrm{.}00$ $ $1,064\mathrm{.}00$

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