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 $25,000 Machine hours Materials receiving 60,000 Shipments received Machine setups 10,000 # of setups Inspection 24,000 # of inspections The expected activity for the year for various cost drivers is: Direct Labor Hours 40,000 Machine hours 12,500 Shipments Received 5.000 Setups 100 Quality inspections 8,000 The company is considering accepting a significant production contract, Estimates for the contract are as follows: Direct materials $120,000 Direct labor (800 hours) $160,000 Number of material shipments received 250 Number of inspections 400 Number of setups 10 Number of machine-hours 1,500 NOTE: Round all per-unit costs to nearest cent. How much overhead should be allocated to the contract based on Activity-Based Costing? NOTE: Round all per-unit costs to nearest cent. How much overhead should be allocated to the contract based on Activity-Based Costing? Select one: a. $2,380 b. $4,800 C. $5,300 d. $8,200 e. None of the above