Answered step by step
Verified Expert Solution
Question
1 Approved Answer
JIT Features and Product Costing Accuracy Prior to installing a JIT system, Buckner Company, a producer of automobile parts, used maintenance hours to assign maintenance
JIT Features and Product Costing Accuracy Prior to installing a JIT system, Buckner Company, a producer of automobile parts, used maintenance hours to assign maintenance costs to its three products (wheels, rims, and hal bearings). The maintenance costs totaled $12,000,000 per year. The maintenance hours used by each product and the quantity of each product produced are as follows: Wheels Bearings Maintenance Hours Quantity Produced 150,000 300,000 350,000 187,500 281,250 350,000 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 cl Maintenance costs for the three cells still totaled $12,000,000; however, these costs are now traceable to each cell as follows: Cell, wheels Cell, rims Cell, bearings Required: $2,640,000 4,560,000 5,600,000 1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent. Wheels Rims Bearings per unit per unit per unit 2. Compute the maintenance cost per unit for each product after installing IT. If required, round your answers to the nearest cent. Wheels Rims Bearings per unit per unit per unit Previous Ner
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started