'Sygate Technologies Inc.\r'

'Sygate2. furnish overhead be completelyocation at Korea auto insurance Tasks: a) What would be the sack up income of the Taejon split up as of 2007 and 2008 if the headquarters overhead live were allocated by the current method? target the amounts of revenue, and direct and indirect costs of the Taejon branch for these two years. b) The current overhead cost driver, branch revenues, is criticized because it lacks any logical consanguinity to the overhead costs allocated by headquarters. use up more appropriate cost drivers for the 17 overhead costs listed in the movement Exhibit 3.You may refer to descriptions of the 17 overhead costs incurred by the cinque teams at the headquarters. c) Using your cost drivers from (2) above, inscribe the net income of the Taejon branch as of 2007 and 2008. compare your answer to the amount from (1). Do you run that Kims performance in 2008 would now be evaluated more properly? Why or wherefore not? d) Which cost drivers machinate t he biggest differences between the net incomes of? Do these cost drivers have anything to do with Kims effort in 2008? e) The first rudiment method matches specific probable cost drivers with corresponding overhead costs.Discuss why the ABC method would reward a manager with higher motivation in a competitive market. Also, discuss the shortcomings of the ABC method at the level of the good organization. 3. Dakota Office products Tasks: a) Why was Dakotas existing price remains inadequate for its current operational environment? b) Develop an body process-based cost system for Dakota based on year 2000 data. direct the activity cost-driver rate for each activity in 2000. c) Using your answers in b), imagine the favourableness of customer A and Customer B. d) What explains any difference in profitableness between the two customers? ) What are the limitations, if any, to the estimates of the profitability of the two customers? f) Is there any additive information you would l ike to explain the sex act profitability of the two customers? g) Assume that Dakota applies the abbreviation done in doubtfulness c) to its entire customer base. How could such information divine service the Dakota managers increase company profits? h) conjecture that a major customer switched from placing all its orders manually to placing all its orders over the lucre site. How should this affect the activity cost driver rates calculated in question b)? How would the switch affect Dakotas profitability?\r\n'