Answer:
Wieters Industries
a. Activity Rates:
Machine setup =    $250
Inspection =              300
Materials receiving   140
b. The activity-based unit cost of the smartphone case is:
= $13.04
Explanation:
a) Data and Calculations:
Activity             Activity Overhead $   Cost Driver      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
Total overhead costs  $572,000
Activity Rates:
Machine setup =    $250 ($200,000/800)
Inspection =              300 ($120,000/400)
Materials receiving   140 ($252,000/1,800)
Budgeted data for smartphone case production:
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
Production 15,000 units
Overhead Applied to Smartphone Case:
Number of setups 92 * $250 =             $ 23,000
Number of quality tests 400 * $300 =    120,000
Number of purchase orders 50 * $140 =   7,000
Total overhead applied =                      $150,000
Overhead per unit = $10 ($150,000/15,000)
Unit Cost of Smartphone Case:
Direct materials per unit  $2.50
Direct labor per unit        $0.54 
Overhead per unit         $10.00
Total unit cost =             $13.04