Outback Amalgamated $($OA$)$ produces machine parts as a contract provider for large manufacturing companies. OA produces two parts, axles and flywheels. The competition is severe among contract producers, and OA$$s top management realizes how susceptible its market is to cost$$cutting competitors. Hence, having a very accurate understanding of costs is important to OA$$s existence. OA$$s president, Kanga Roo, has observed that the company$$s current cost to produce axles is $$21\mathrm{.}35,$ and the current cost to produce gears is $$12\mathrm{.}36.$ She indicated to the controller that she suspects some difficulties with the cost system because OA is suddenly experiencing extraordinary competition on axles, but it seems to have a virtual corner on the flywheel market. Ms$.$ Roo is even considering dropping the axle line and converting the company to an one$$product manufacturer of flywheels. She asked the controller, Q$.$ T$.$ Koala, to conduct a thorough cost study and to consider whether changes in the cost system are necessary. The controller collected the following data about the company$$s costs and various manufacturing activities for the most recent month $($attached image$).$

$1.$ Calculate OA$$s current plant$$wide overhead rate based on direct labor hours.

$2.$ Verify and show OA$$s step$$by$$step calculation of overhead cost per unit of $$12\mathrm{.}82$ for axles and $$6\mathrm{.}10$ for flywheels.

$3.$ Calculate the manufacturing overhead cost per unit for axles and flywheels using activity$$based costing, assuming each of the five cost pools represents a separate activity pool. $($You must think through which is the appropriate driver here!$)$

$4.$ Write a few sentences on OA$$s current cost system and the reason the company is facing severe competition for axles but little competition for flywheels. Specifically answer if the axles should be dropped?