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 $217,600 # of setups 149.930 # of quality tests 177,620 # of purchase orders Cost driver quantity 850 470 1,660 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 85 88 PF 37 mm 394 18,720 units (a) Calculate the activity rate for each cost pool. Machine setup $ per setup Inspection per test Materials receiving per PO Save for Later Attempts: 0 of 1 used Submit apo