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Sheridan 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

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Sheridan 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. Activity Machine setup Inspection Materials receiving Activity Overhead $ $ 204,450 180,950 340,400 Cost Driver # of setups # of quality tests # of purchase orders Cost Driver Quantity 2,350 470 3,700 The budgeted data for smartphone case production are as follows. Direct materials $2.80 per unit Direct labor $0.48 per unit Number of setups 235 Number of quality tests 435 Number of purchase orders 70 Production 242,950 units (a) Your answer is incorrect. Calculate the activity rate for each cost pool. $ Machine setup / setup $ /test Inspection /PO Materials receiving

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