one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras,...

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one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13). re Inc. LUl)es specialized equipment for polishing optical lenses. There are two mode re are two models: The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools: Allocation Base Number of parts Hours of machine time Cost Pools Materials handling Manufacturing supervision Assembly Machine setup Inspection and testing Packaging Costing Rate $2.40 per part $14.80 per hour Number of parts$3.30 per part Each setup Logged hous Logged hours S56.50 per setup $45.50 per hour $19.50 per hour LCI currently sells the B-13 model for $1,775 per unit and the F-32 model for $1,220 per unit. Manufacturing costs (per unit) and activity usage (per unit) for the two products are as follows: B-13 F-32 Direct materials Number of parts Machine hours Inspection time Packaging time Setups $164.50 $75.60 160.00 120.00 4.20 0.80 0.50 7.90 1.70 0.90 3.00 2.00

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