Crane 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 Quantity Activity Activity Overhead $ Cost Driver Machine setup Inspection Materials receiving $ 217,460 129,630 262,800 # of setups # of quality tests # of purchase orders 830 435 1,825 The budgeted data for smartphone case production are as follows Direct materials Direct labor Number of setups Number of quality tests Number of purchase orders 50 Production $2.60 per unit $0.52 per unit 93 415 15,000 units