ens Care Incorporated (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	Costing Rate
Materials handling	Number of parts	$ 2.90	per part
Manufacturing supervision	Hours of machine time	$ 14.85	per hour
Assembly	Number of parts	$ 3.55	per part
Machine setup	Each setup	$ 56.75	per setup
Inspection and testing	Logged hours	$ 45.75	per hour
Packaging	Logged hours	$ 19.75	per hour

LCI currently sells the B-13 model for $2,900 and the F-32 model for $2,620. Manufacturing costs and activity usage for the two products are as follows:

	B-13	F-32
Direct materials	$ 164.75	$ 75.80
Number of parts	165	125
Machine hours	8.15	4.25
Inspection time	2.20	1.30
Packaging time	1.15	0.75
Setups	6	5

The product cost for model B-13 is:

Multiple Choice

$1,261.38.

$1,649.39.

$1,813.89.

$1,515.41.

$1,336.98.