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 Activity overhead $ Cost driver Cost driver quantity

Machine setup $192,000 # of setups 800

Inspection 175,000 # of quality tests 500

Materials receiving 198,000 # of purchase orders 1,800

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

Direct materials $2.60per unit

Direct labor $0.59per unit

Number of setups 90

Number of quality tests 400

Number of purchase orders 60

Production 20,000units

(A)Calculate the activity rate for each cost pool.

Machine Setup $ per set up

Inspection $ per test

Materials receiving $ per PO