Lens Care Inc

question 80

Multiple Choice

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:
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:The product cost for model B-13 is:

• A) $1,457.82.
• B) $1,293.32.
• C) $1,159.34.
• D) $905.31.
• E) $980.91.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization, influencing motivation.

Self-actualization

The achievement or actualization of an individual's skills and possibilities, seen as an inherent motivation or necessity in all people.

Underreward Inequity

A situation where an individual perceives they are receiving less compensation or recognition for their efforts compared to others.

Outcome/Input Ratio

A concept used in equity theory referring to the ratio of contributions (inputs) an individual gives to a job and what they receive (outcomes) in return.