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 1.70 0.80 Inspection time Packaging time 0.90 0.50 Setups 3.00 2.00 The product cost for model F-32 is