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 company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Machine setup Inspection Materials receiving Activity overhead $ Cost driver $174,790 # of setups 199,680 # of quality tests 210.600 # of purchase orders Cost driver quantity 770 520 1,950 The budgeted data for smart phone case production are as follows. Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders Production $2.80 per unit $0.64 per unit 88 360 20.670 units (a) Your answer has been saved. See score details after the due date. Calculate the activity rate for each cost pool. Machine setup 227 per setup Inspection 384 per test Materials receiving > 108 per PO (b) Calculate the activity-based unit cost of the smart phone case. (Round answer to 2 decimal places, e.g. 1.64.) Activity-based unit cost $