Wieters 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 Cost Driver Quantity 2,500 Activity Machine setup Inspection Materials receiving Activity Overheads $ 200,000 160,000 # of setups # of quality tests # of purchase orders 400 252.000 3,000 The budgeted data for smartphone case production are as follows Direct materials $1.25 per unit Direct labor $0.80 per unit None 260 The budgeted data for smartphone case production are as follows. Direct materials $1.25 per unit Direct labor $0.80 per unit Number of setups 260 Number of quality tests 75 Number of purchase orders 50 Production 250,000 units (a) (b) Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, eg, 15.25.) $ Activity-based unit cost