Addison Company manufactures components for space vehicles. It needs to forecast its direct-labor costs to use in making a competitive bid for 700 units of a certain component. The company’s experience reveals that an 80% learning curve (b=-.3219) is appropriate. Recently, Addison produced its first 100 units of these components in 8,000 labor hours. Labor is paid $20 per hour. Using the cumulative average-time learning model, compute the predicted direct-labor costs for a costs for a contract of the additional 700 units.