Use the following information to answer the next four questions.

Catalytic Chemical 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 $20,000 Machine hours Materials receiving 80,000 Shipments received Machine setups 50,000 # of setups The expected activity for the year for various cost drivers is: Machine Hours 20,000 Shipments Received 4,000 Setups 200 The company is considering accepting a significant production contract. Estimates for the contract are as follows: Direct materials $100,000 Direct labor (7,500 hours) $150,000 Number of material shipments received 290 Number of setups 35 Number of machine hours 3,000 NOTE: Round all per-unit costs to nearest cent.

25.Using activity based-costing what is the rate that should be used to allocate maintenance overhead?

26.Using activity-based costing what is the rate that should be used to allocate materials receiving?

27.Using activity-based costing what is the rate that should be used to allocate machine setups?

28.Using activity-based costing what is the total estimated amount of the contract including all costs. A. None of the above

B. 167,550

C. 267,550

D. 117,550