Waterway 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. Activity Activity Overhead $ Cost Driver Machine setup $166,050 # of setups Cost Driver Quantity 2,050 Inspection 145,550 # of quality tests 410 Materials receiving 266,600 # of purchase orders 3,100 The budgeted data for smartphone case production are as follows. Direct materials $2.45 per unit Direct labor $0.54 per unit Number of setups 205 Number of quality tests 405 The budgeted data for smartphone case production are as follows. Direct materials $2.45 per unit Direct labor $0.54 per unit Number of setups 205 Number of quality tests 405 Number of purchase orders 40 Production 327,640 units (a) Your answer is correct. Calculate the activity rate for each cost pool. +A Machine setup 81/setup +A Inspection 355/test Materials receiving $ 86/PO (b) Calculate the activity-based unit cost of the smartphone case. (Round answer to 2 decimal places, e.g. 15.25.) Activity-based unit cost