The Southeastern Company's manufacturing costs for the third quarter of 2008 were as follows:
| Depreciation and direct labor |
$700,000 |
| Other variable manufacturing costs |
$100,000 |
| Depreciation of factory building and manufaxcturing equipment |
$80,000 |
| Other fixed manufacturing costs |
$18,000 |
What amount should be considered product costs for external reporting purposes?