I do a lot of work with acrylic.
To get a good square cut, roll the rod under an Xacto blade as you would to cut dowels. Grip with needle nose pliers on
each side of the line and snap. If you don't have a good end, try again. If it is close, you can fix it.
On a good hard, flat surface (I use a piece of 1/2" tempered glass) place a piece of 800 grit silicon carbide paper grit side
up. Hold the piece of rod with needle noses vertically, and just a few swipes will do it. Repeat with 1200 paper.
Now here's a trick... turn the paper over, and rub it on the back of the carbide paper. There is enough abrasive dust in
the paper to give a good polish.
Glue the rod in place with just a very tiny bit of Pacer Formula 560 Canopy Glue wiped inside the hole with a toothpick. Press
in the rod, and wipe the inside of your new lens with a damp cotton swab. This glue will dry clear.
For HO you can do a flare with a flame... practice, just a quick pass through a lighter flame. You may have to try more than once
to get it right. A flare will be too large for N diesels, but just right for HO. It is easier to do this before cutting it off to length.
You can use the same acrylic rod, heated in a flame, just one quick pass, to shape into a "light pipe" such as used on the Kato
HO C44-9W wor ditch lights. You may have to do this more than once to get it right, but you get a lot of rods per pkg.
You can join a "2 mm LED" to the end of such a light pipe with a short piece of heat shrink tubing.