A manufactures two types of storage cabinets: Small and Large

Small Large

Direct material cost $52.50 $86

Direct labour cost $30 $30

Budgeted volume (units) 8,000 16,360

The management accountant has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing and product shipping. Data on the number of setups, machine hours and outgoing shipments, which are the activities' three respective cost drivers, follow:

Small Large Total

Setups 50 40 90

Machine hours 16,000 22,000 38,000

Outgoing shipments 100 80 180

The firm's total overhead of $4,682,000 is subdivided as follows: manufacturing setups, $1,008,000; machine processing, $2,774,000; and product shipping, $900,000.

Calculate the unit manufacturing cost of Large cabinets by using activity-based costing.