question 3. calculate the manufacuting cost of one smartphone.

e7-8 Calculating product costs using activity-based costing (CIMA adapted) 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 dictivity costs, and cost drivers for the coming year are as follows. Cost Driver Activity Activity Overhead $ Cost Driver Quantity Machine setup $ 200,000 # of setups 800 Inspection 120,000 # of quality tests 400 Materials receiving 252,000 # of purchase orders 1,800 The budgeted data for smartphone case production are as follows. Direct materials $2.50 per unit Direct labor $0.54 per unit Number of setups 92 Number of quality tests 400 Number of purchase orders 50 The budgeted data for smartphone case production are as follows. Direct materials $2.50 per unit Direct labor $0.54 per unit Number of setups 92 Number of quality tests 400 Number of purchase orders 50 15,000 units Production Required - Use Activity-Based-Costing (ABC) method, show clear calculations, and answer the following questions: 1. Calculate the "activity rate" for each cost activity. 2. Calculate the total manufacturing costs of the 15,000 smartphones. ("hint: total direct material costs = $2.50 per phone X 15000 phones; similar for the direct labor) 3. Calculate the manufacturing cost of one smartphone