Lens Care Inc Lci Manufactures Specialized Equipment For Polishing Optical Lenses There Are Two Models One Mainly U 1 (38.97 KiB) Viewed 57 times
Lens Care Inc Lci Manufactures Specialized Equipment For Polishing Optical Lenses There Are Two Models One Mainly U 2 (37.33 KiB) Viewed 57 times
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 Base Materials handlig Number of parts Manufacturing supervision Assembly Hours of machine time Number of parts Costing Rate $ 2.40 per part $14.80 per hour $ 3.30 per part $56.50 per setup $45.50 per hour $19.50 per hour Machine setup Each setup Logged hours 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 usage for the two products are as follows: B-13 F-32 Direct materials $164.50 $ 75.60 160 120 Number of parts Machine hours Inspection time 7.99 4.20 1.70 0.80
Number of parts Materials handling Manufacturing supervision Assembly Hours of machine time Number of parts Each setup $2.40 per part $14.80 per hour $ 3.30 per part $56.50 per setup $45.50 per hour $19.50 per hour Machine setup Logged hours Inspection and testing Packaging Logged hours 31.10 LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220. Manufacturing costs and activity usage for the two products are as follows: B-13 F-32 Direct materials 164.50 $75.60 160 120 7.90 4.20 Number of parts. Machine hours Inspection time) Packaging time Setups 1.70 0.80 0.90 0.50 2 The market price for 8-13 and F-32 are reduced to $1,695 and $1,095 respectively. To achieve the target cost, Lens Care plans to reduce materials handling costs. How many parts must be removed from B-13 in order to achieve the target cost for B-13 (round
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