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Exelon Corporation operates three business segments: Utilities, Generation, and Nuclear. The total overhead costs for the year amounted to $14 million. Using the activity-based costing

Exelon Corporation operates three business segments: Utilities, Generation, and Nuclear. The total overhead costs for the year amounted to $14 million. Using the activity-based costing (ABC) method, allocate the overhead costs to each segment based on the following activity drivers and percentages:

  • Utilities: 50% of total activity
  • Generation: 25% of total activity
  • Nuclear: 25% of total activity

Calculate the overhead costs allocated to each segment.

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