Two Rivers Manufacturing produces an auto-quartz watch movement called OP462. Two Rivers expects to sell 10,000 units of OP462 and to have an ending finished inventory of 7,000 units. Currently, it has a beginning finished inventory of 1,200 units. Each unit of OP462 requires two labor operations, one labor hour of assembling and one labor hour of polishing. The direct labor rate for assembling is $13 per assembling hour, and the direct labor rate for polishing is $16.50 per polishing hour.

The expected cost of direct labor for OP462 is: