Sunland 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.

$\backslash$table$[[$Activity$,$Activity Overhead $$,$Cost Driver,Cost Driver Quantity$],[$Machine setup,$ $225,000,$# of setups,$2,500],[$Inspection$,200,000,$# of quality tests,$500],[$Materials receiving,$380,000,$# of purchase orders,$4,000]]$

The budgeted data for smartphone case production are as follows.

$\backslash$table$[[$Direct materials,$$2\mathrm{.}95$ per unit$],[$Direct labor,$$0\mathrm{.}45$ per unit$],[$Number of setups,$250],[$Number of quality tests,$450],[$Number of purchase orders,$40]]$