can A be used by Red River Banking Company to improve the overall management of monthl operating costs? y Product Costing: Plantwide overhead versus Activity-Based Costing Dixon produces machine parts as a contract provider for a large manufacturing company. Dixon parts. shafts and gears. is contract and Dixon's top having a very accurate understanding vulnerable its market is to cost-cutting competitors. fts is $21.35.and observed that the Dixon's cost to produce company he some the current cost to produce gears indicated to the controller that dinary competition on shafts, but because Dixon is experiencing extraor onsidering seems to have a virtual corner on the gears market. He is even He dropping the shaft line and converting the company one-product manufacturer whether asked the controller, to a consider changes in the cost George Coleman, to conduct a thorough cost following data about system a The controller collected the the company's costs and various manufacturing activities for the most recent month Shafts Gears 10.500 $31.86 S24 overhead per unit (based on direct labor hours)... $6.10 $12.82 Materials and direct labor cost per unit $6.26 Number of production runs 10 Number of purchasing and receiving orders processed. 100 Number of machine hours. 12,750 6,000 Number of direct labor hours Number of engineering hours 25,000 2,500 5,000 5,000 Number of material moves The controller was able to summarize the company's total manufacturing overhead into the fol lowing pools Setup costs................. S 30,000 175,000 Purchasing and receiving costs 210,000 Materials handling costs. S705,000 Required alculate Dixon's current plantwide overhead rate based on direct labor hours rify Dixon's calculation of overhead c per unit of s12.82 for shafts and S6.10 for gears e the manufacturing overhead cost per unit for shafts and gears using activity-based Calcu costing, assuming each of the five cost pools represents a separate activity pool. Use the most appropriate activity driver for assigning activity costs to the two products on Dixon's current cost system and the reason the company is facing fierce com on for shafts but little competition for gears ustomer Profitability Analysis aeronautics subcontract company that designs and manu- British