B MC Qu. 13-21 (Algo) Float Incorporated manufactures a wide variety ...

Float Incorporated manufactures a wide variety of parts for recreational boating, including boat engines. The component is purchased by OEM (Original Equipment Manufacturers) such as Mercury and Honda, for use in the larger and more powerful outboards. The units sell for $1,000, and sales volume averages 33,700 units per year. Recently, Float's major competitor lowered the price of the equivalent part to $760. The market was very competitive, and Float realized it had to meet the new price or lose significant market share. The controller assembled the following data for the most recent year:

Cost and Usage for Production of 33,700 Units
	Standard Cost	Actual Quantity	Actual Cost
Materials	$ 6,673,000		$ 7,153,000
Direct labor	2,289,000		2,193,000
Indirect labor	3,281,000		3,089,000
Inspection (hours)		4,300	554,500
Materials handling (number of purchases)		73,850	402,350
Machine setups		5,450	1,505,900
Returns and rework (number of times)		1,040	97,600
Total			$ 14,995,350

The target cost for maintaining current market share and profitability is (round to nearest cent):