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:

Cost Pools	Allocation Base	Costing Rate
Materials handling	Number of parts	$2.40 per part
Manufacturing supervision	Hours of machine time	$14.80 per hour
Assembly	Number of parts	$3.30 per part
Machine setup	Each setup	$56.50 per setup
Inspection and testing	Logged hours	$45.50 per hour
Packaging	Logged hours	$19.50 per hour

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:

	B-13	F-32
Direct materials	$164.50	$75.60
Number of parts	160.00	120.00
Machine hours	7.90	4.20
Inspection time	1.70	0.80
Packaging time	0.90	0.50
Setups	3.00	2.00

The product cost for model B-13 is:

$1,457.82.

$1,293.32.

$1,159.34.

$905.31.

$980.91.