Korea Auto Insurance Company Essay

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Headquaters' Overhead Cost Allocation at Korea Auto Insurance Co. Inc.
| | | |Korea Auto Insurance Co. Inc. | | | |
| | | |For periods 2007 thru 2008 | | | |
|Question 1 - Net Income, revenue, direct, and indirect costs using current method |
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|Question 3 - Net Income, revenue, direct, and indirect costs using cost drivers |
| | |Whole Company | |% of Revenue |Teajon Branch | |% of Revenue |
| |
|Comparison of Methods |Current Allocation |ABC |
| |2007 |2008 |2007 |2008 |
|Indirect costs |IT |$1,906,234 |$3,541,528 |$1,505,455.69 |$1,832,478.23 |
| |OS |$1,875,154 |$3,526,953 |$1,697,330.10 |$1,487,478.31 |
| |Inv |$1,222,476 |$1,821,773 |$1,368,452.09 |$1,821,773.49 |
| |Mkt |$1,035,996 |$1,850,922 |$1,000,000.00 |$1,270,000.00
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