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Chapter 11 Homework (Application) eBook Prior to installing a JIT system, Barker Company, a producer of automobile parts, used maintenance hours to assign maintenance costs

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Chapter 11 Homework (Application) eBook Prior to installing a JIT system, Barker Company, a producer of automobile parts, used maintenance hours to assign maintenance costs to its three products (wheels, brake pads, and ball bearings). The maintenance costs totaled $7,706,580 per year. The maintenance hours used by each product and the quantity of each product produced are as follows: Wheels Maintenance Hours Quantity Produced 197,000 172,375 197,000 172,375 228,000 199,500 Pads Bearings After installing JIT, three manufacturing cells were created, and cell workers were trained to perform preventive maintenance and minor repairs. A full-time maintenance person was also assigned to each cell. Maintenance costs for the three cells still totaled $7,706,580; however, these costs are now traceable to each cell as follows: Cell, wheels $2,278,530 Cell, pads 2,440,830 Cell, bearings 2,987,220 Required: 1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent. Wheels s 14.124 x per unit Pads S per unit Bearings s per unit 2. Compute the maintenance cost per unit for each product after installing JIT. If required, round your answers to the nearest cent. Wheels per unit Pads per unit Bearings 5 per unit Check My Work Previous Next >

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