Problem 4 Catalytic Chemical Corporation has a significant level of After preparing their budget for the next year, management costs (the cost driver for each overhead cost pool is also shown the Estimated Cost Driver Total Cost drive. $20,000 +Machinehours Maintenance Materials 0,000Shipments 50,000-1 # of setups 30,000 # of inspections 4,000 200 8,000 Inspection The company is considering accepting a significant production contract are as follows: contract. Estimates for the Direct materials Direct labor (7,500 hours) Number of material shipments 100,000 150,000 290 Number of inspections Number of setups Number of machine hours 50 35 3,000 What amount of overhead would be allocated to the contract ifa based on direct labor hours were used? The company estimates that Direct Labor Hours for the year is 40,000 direct labor hours a. How much overhead should be allocated to the contract based on Activity-Based Costing? b. c. What is the total cost of the proposed contract under Activity-Based Costing