Current Attempt in Progress Sheridan Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Activity Overhead $ Cost Driver Machine setup $125,800 # of setups Cost Driver Quantity 1,700 Inspection 108,800 # of quality tests 340 Materials receiving 189,600 # of purchase orders 2,400 The budgeted data for smartphone case production are as follows. Direct materials $2.10 per unit Direct labor $0.61 per unit Number of setups 170 Number of quality tests 370 Number of purchase orders 50 Production 269,860 units (a) Calculate the activity rate for each cost pool Machine setup $ /setup /test Inspection S Materials receiving /PO eTextbook and Media (b) X Your answer is incorrect. Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, eg. 15.25.) Activity-based unit cost 3.85