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Toyota Motor Corporation operates three business segments: Automotive, Financial Services, and Robotics & Innovation. The total overhead costs for the year amounted to $20 million.
Toyota Motor Corporation operates three business segments: Automotive, Financial Services, and Robotics & Innovation. The total overhead costs for the year amounted to $20 million. Using the activity-based costing (ABC) method, allocate the overhead costs to each segment based on the following activity drivers and percentages:
- Automotive: 60% of total activity
- Financial Services: 25% of total activity
- Robotics & Innovation: 15% of total activity
Calculate the overhead costs allocated to each segment.
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