Manufacturing Cost Assignment | Top Universities

Lens Care Inc. (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 Based  Costing Rate $ 2.40 per part $14.80 per hour $ 3.30 per part $56.50 per setup $ 45.50 per hour $ 19.5e per hour Materials handling

Manufacturing supervision Assembly Machine setup Number of parts Hours of machine time Number of parts Each setup Inspection and testing Packaging Logged hours LCI currently sells the B-13 model for $1.775 and the F-32 model for $1.220. Manufacturing costs and activity used for the two products are as follows: F-32 B-13 $ 75.60 $ 164.50 Direct materials Number of parts 160 120 4.20 7.90 Machine hours Inspection time Packaging time 0.80 1.70 0.50 0.98 2 3 Setups The profit margin based on manufacturing cost for model B-13 is:

Multiple Choice

$314.69.

$239.09

$338.16

$317.18

$481.68. Get Accounting homework help today