Waterway 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 Activity Overhead $ Cost Driver Machine setup $253,800 # of setups Cost Driver Quantity 2,700 Inspection 226,800 # of quality tests 540 Materials receiving 435,600 # of purchase orders 4,400 The budgeted data for smartphone case production are as follows. Direct materials $3.15 per unit Direct labor $0.41 per unit Number of setups 270 Number of quality tests 470 Number of purchase orders 60 Production 304,960 units (a) Your answer is correct. Calculate the activity rate for each cost pool. (b) $ 94 /setup Machine setup $ 420 /test Inspection $ 99 /PO Materials receiving eTextbook and Media Your answer is incorrect. Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, eg. 15.25) $ Activity-based unit cost Attempts: 1 of 4 used