Megan Industries manufactures several products including a basic case for a popular smart phone. The company is considering adopting an activity-based costing approach for setting its budget. The companys production activities, budgeted activity costs, and cost drivers for the coming year are as follows.

Activity

Activity overhead $

Cost driver

Cost driver quantity

Machine setup		$189,600		# of setups		790
Inspection		180,440		# of quality tests		520
Materials receiving		171,720		# of purchase orders		1,620

The budgeted data for smart phone case production are as follows.

Direct materials		$2.60	per unit
Direct labor		$0.58	per unit
Number of setups		91
Number of quality tests		440
Number of purchase orders		60
Production		21,940	units

Calculate the activity rate for each cost pool.

Machine setup		$ per setup
Inspection		$ per test
Materials receiving		$ per PO