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	$	4.10	per part
Manufacturing supervision	Hours of machine time	$	14.97	per hour
Assembly	Number of parts	$	4.15	per part
Machine setup	Each setup	$	57.35	per setup
Inspection and testing	Logged hours	$	46.35	per hour
Packaging	Logged hours	$	20.35	per hour

LCI currently sells the B-13 model for $5,600 and the F-32 model for $5,980. Manufacturing costs and activity usage for the two products are as follows:

	B-13				F-32
Direct materials	$	165.35			$	76.28
Number of parts		177				137
Machine hours		8.75				4.37
Inspection time		3.40				2.50
Packaging time		1.75				1.35
Setups		2				1

The product cost for model F-32 is: