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Royal Dutch Shell plc operates three business segments: Integrated Gas, Upstream, and Downstream. The total overhead costs for the year amounted to $30 million. Using

Royal Dutch Shell plc operates three business segments: Integrated Gas, Upstream, and Downstream. The total overhead costs for the year amounted to $30 million. Using the activity-based costing (ABC) method, allocate the overhead costs to each segment based on the following activity drivers and percentages:

  • Integrated Gas: 30% of total activity
  • Upstream: 40% of total activity
  • Downstream: 30% of total activity

Calculate the overhead costs allocated to each segment.

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