Product Costing: Plantwide Overhead versus Activity$-$Based Costing

The controller was able to summarize the company's total manufacturing overhead into the following pools:

a$.$ Calculate Sterling's current plantwide overhead rate based on direct labor hours.

per direct labor hour

b$.$ Verify Sterling's calculation of overhead cost per unit of $$7\mathrm{.}50$ for shafts and $$3\mathrm{.}75$ for gears.

Shafts:

$

Gears:

units $=$$$7\mathrm{.}50$ per unit

$$0$

units $=$$$7\mathrm{.}50$ per unit

$10$ units $=$$$3\mathrm{.}75$ per unit

c$.$ Calculate the manufacturing overhead cost in tot: Note: Round your answers to two decimal places.

d$.$ Comment on Sterling's current cost system and the reason the company is facing fierce compecition for shatts but little competition for gears.