Kates Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for $5. The company computes the manufacturing overhead rate on a quarterly basis based upon the planned number of units to be produced that quarter. The following data are from Kates Kale Chipss projections for the upcoming quarter:

	Projections
Sales		29,000	bags
Production		31,000	bags
Variable manufacturing cost per bag	$	3.80
Sales and distribution costs per bag	$	0.55
Total fixed manufacturing overhead	$	65,100
Fixed administrative overhead	$	27,000

Compute the projected product cost per bag under variable costing. (Round your final answer to 2 decimal places.)