ACR MLG ALT DEV OVERSHOT DURING CLB OUT FROM DFW. FO WAS LOOKING AT THE WRONG ALTIMETER.

Narrative

OUR AIRLINE USES A 3 ALTIMETER COCKPIT. BELOW 10000 FT THE CAPT AND FO ALTIMETERS ARE SET TO QFE. THE THIRD ALTIMETER IS ALWAYS ON QNH. THE FO WAS FLYING. WE WERE ON CLBOUT FROM DFW TO AN INITIAL ALT OF 10000 FT. I HAD RESET MY ALTIMETER TO QNH ABOUT 1000 FT BELOW LEVEL OFF. THE FO KEPT HIS ON QFE. I CALLED THE MANDATORY '9 FOR 10 THOUSAND.' THE FO ACKNOWLEDGED AND CONTINUED TO LOOK FOR TFC AT 11000 FT AND 1 O'CLOCK CALLED OUT BY DEP CTL. HE WAS HAND FLYING. AT 200 FT FROM LEVEL OFF ALT I NOTICED THE FO STILL CLBING AT A LARGE RATE AND STILL PREOCCUPIED WITH ACQUIRING THE TFC. I STATED 'THERE'S YOUR ALT' AT WHICH TIME HE BEGAN HIS LEVEL OFF AND OVERSHOT BY 200 FT. HE EXPLAINED HE WAS FOCUSING ON HIS QFE ALTIMETER. WHILE HE RESET HIS ALTIMETER HE ALLOWED THE ACFT TO GRADUALLY CLB AGAIN. I STATED 'WATCH YOUR ALT' AND PHYSICALLY PUSHED THE YOKE FORWARD. WE STOPPED OUR CLB AT 10300 FT. I BELIEVE A QFE ALTIMETER IS NOT NECESSARY IN OUR COCKPITS. THIS INCIDENT SHOWS HOW DISTR AND UNSAFE IT CAN BE IF A RELATIVELY INEXPERIENCED PLT HAS TO DEAL WITH IT IN A HIGH WORK ENVIRONMENT. IF I HADN'T CALLED OUT OUR CORRECT ALT WE SURELY WOULD HAVE LEVELED OFF AT 10000 FT ON QFE INSTEAD OF QNH. THAT WOULD HAVE PUT US ONLY 400 FT FROM THE 11000 FT TFC!