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Duke Energy Corporation operates three business segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The total overhead costs for the year
Duke Energy Corporation operates three business segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables. The total overhead costs for the year amounted to $22 million. Using the activity-based costing (ABC) method, allocate the overhead costs to each segment based on the following activity drivers and percentages:
- Electric Utilities and Infrastructure: 45% of total activity
- Gas Utilities and Infrastructure: 35% of total activity
- Commercial Renewables: 20% of total activity
Calculate the overhead costs allocated to each segment.
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