Question: Coronado Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity - based costing approach for

Coronado 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.
\table[[Activity,Activity Overhead $,Cost Driver,\table[[Cost Driver],[Quantity]]],[Machine setup,$136,800,# of setups,1,800],[Inspection,118,800," of quality tests,360],[Materials receiving,210,600,# of purchase orders,2,600]]
The budgeted data for smartphone case production are as follows.
Direct materials
Direct tabor :
Number of setups
Number of quality tests
Number of purchase orders
Production
$2.20 per unit
$0.59 per tunit
180
380
60
287,880 units
(a)
Your answer is correct.
Calculate the activity rate for each cost pool.
\table[[Machine setup,$,setup],[Inspection,$,test],[Materials receiving $,/PO,]]
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(b)
Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal pleces, es.15.25.)
Activity-based unit cost
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 Coronado Industries manufactures several products including a basic case for a

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