Oriole 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. Cost Driver Activity Activity Overhead $ Cost Driver Quantity Machine setup $ 172,200 # of setups 2,100 Inspection 151,200 # of quality tests 420 Materials receiving 278,400 # of purchase orders 3,200 The budgeted data for smartphone case production are as follows. Direct materials $2.55 per unit Direct labor $0.53 per unit Number of setups 210 Number of quality tests 410 Number of purchase orders 45 Production 224,980 units