He suspects some problems with the cost system because Dixon is suddenly experiencing extraordinary competition on shafts, but it seems to have a virtual corner on the gears market. He is even considering dropping the shaft line and converting the company to a one-product manufacturer of gears. He asked the controller, George Coleman, 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 cost and various manufacturing activities for the most recent month: The controller was able to summarize the company's total manufacturing overhead into the following pools. Required. a. Calculate Dixon's current overhead rate based on direct labor hours. b. Verify Dixon's calculation of overhead cost per unit of shafts and gears using activity-based costing, assuming each of the five cost pools represents a separate activity pool. Use the most appropriate activity driver for assigning activity costs to two products. d. Comment on Dixon's current cost system and the reason the company is facing fierce competition for shafts but little competition for gears