Bramble 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 $232,050 # of setups 2,550 Inspection 206,550 # of quality tests 510 Materials receiving 393,600 # of purchase orders 4,100 The budgeted data for smartphone case production are as follows. Direct materials Direct labor $3.00 per unit $0.44 per unit Number of setups Number of quality tests 255 455 Number of purchase orders 45 Production 264,750 units