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 ball bearings$).$ The maintenance costs totaled $$6,326,180$ per year. The maintenance hours used by each product and the quantity of each product produced are as follows:

Maintenance Hours Quantity Produced

Wheels $189,000165,375$

Rims $189,000165,375$

Bearings $241,000210,875$