Refer to Exhibit 4: Captain Cold Storage [2 points] Assume…
Refer to Exhibit 4: Captain Cold Storage [2 points] Assume Captain Cold currently uses a traditional overhead system that allocates overhead to customers using pounds per order as a the allocation basis. Calculate the overhead rate under the traditional system. [3 points] Calculate the overhead allocated to each customer using the traditional system. [3 points] Calculate the price charged to each customer using the flat rate of $0.24 per pound. Remember, you may report your answers here and report your calculations in good form in the scratch paper and upload them in the assignment space provided after you complete the test.
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