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Ford Motor Company operates three business segments: Automobiles, Finance, and Technology. The total overhead costs for the year amounted to $8 million. Using the activity-based

Ford Motor Company operates three business segments: Automobiles, Finance, and Technology. The total overhead costs for the year amounted to $8 million. Using the activity-based costing (ABC) method, allocate the overhead costs to each segment based on the following activity drivers and percentages:

  • Automobiles: 45% of total activity
  • Finance: 25% of total activity
  • Technology: 30% of total activity

Calculate the overhead costs allocated to each segment.

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