Activity Activity Overhead $ Cost Driver Cost Driver Quantity Machine setup $178,450 # of setups 2,150 Inspection Materials receiving 156,950 290,400 # of quality tests 430 # of purchase orders 3,300 The budgeted data for smartphone case production are as follows. Direct materials Direct labor $2.60 per unit $0.52 per unit Number of setups 215 Number of quality tests 415 Number of purchase orders 50 Production 347,440 units (a) Your answer is correct. Calculate the activity rate for each cost pool.