Lens 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	$ 2.80	per part
Manufacturing supervision	Hours of machine time	$ 14.84	per hour
Assembly	Number of parts	$ 3.50	per part
Machine setup	Each setup	$ 56.70	per setup
Inspection and testing	Logged hours	$ 45.70	per hour
Packaging	Logged hours	$ 19.70	per hour

LCI currently sells the B-13 model for $2,675 and the F-32 model for $2,340. Manufacturing costs and activity usage for the two products are as follows:

	B-13	F-32
Direct materials	$ 164.70	$ 75.76
Number of parts	164	124
Machine hours	8.10	4.24
Inspection time	2.10	1.20
Packaging time	1.10	0.70
Setups	5	4

The product cost for model B-13 is:

Multiple Choice

$1,719.24.

$1,554.74.

$1,420.76.

$1,166.73.

$1,242.33.