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 companys production activities, budgeted activity costs, and cost drivers for the coming year are as follows.

Activity		Activity Overhead $			Cost Driver			Cost Driver Quantity
Machine setup		$ 178,450			# of setups			2,150
Inspection		156,950			# of quality tests			430
Materials receiving		290,400			# of purchase orders			3,300

The budgeted data for smartphone case production are as follows.

Direct materials		$2.60 per unit
Direct labor		$0.52 per unit
Number of setups		215
Number of quality tests		415
Number of purchase orders		50
Production		347,440 units

(a)

Calculate the activity rate for each cost pool.

Machine setup
Inspection
Materials receiving