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Title: 3 Activity Based Costing

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Subject: Business
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Date: February 2, 2002
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Length: 2 / 417
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What qualitative factors (i.e. issues with vendors, customers, or within the product itself) should the Minnetonka Corporation consider in determining whether they should make or buy the bindings? ? Miscellaneous factors include a percentage of allowable defects, employee turnover affecting production rates, the actual production rates and the efficiency of them meeting consumer demand...

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1. Should the Minnetonka Corporation make or buy the bindings? Show calculations to support your answer. ? Minnetonka should buy the bindings as it costs less per pair to buy them ($79.50) rather than to make them ($80.00): make Discount Calculation buy Direct Labor $ 35...

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