Metal Works Corporation has a significant level of manufacturing overhead. After preparing their budget for the next year, management expects the following overhead costs $($the cost driver for each overhead cost pool is also shown$)$:

Activity Total Cost Cost Driver

Maintenance $$50,000$ Machine hours

Materials receiving $120,000$ Shipments received

Machine setups $20,000$ # of setups

Inspection $48,000$ # of inspections

The expected activity for the year for various cost drivers is:

Cost Drivers Expected Activity

Direct Labor Hours $80,000$

Machine$-$hours $25,000$

Shipments Received $10,000$

Setups $200$

Quality inspections $16,000$

The company is considering accepting a significant production contract. Estimates for the contract are as follows:

Contract Estimate

Direct materials $$240,000$

Direct labor $(1600$ hours$)$ $$320,000$

Number of material shipments received $500$

Number of inspections $800$

Number of setups $20$

Number of machine$-$hours $3,000$

How much overhead should be allocated to the contract based on Activity$-$Based Costing?

NOTE: Round all per$-$unit costs to nearest cent.

Select one:

a$.$ $$9,600$

b$.$ None of the amounts listed.

c$.$ $$16,400$

d$.$ $$4,760$

e$.$ $$10,600$