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 $5,258,750 per year. The maintenance hours used by each product and the quantity of each product produced are as follows:

	Maintenance Hours	Quantity Produced
Wheels	180,000	157,500
Rims	180,000	157,500
Bearings	241,000	210,875

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 $5,258,750; however, these costs are now traceable to each cell as follows:

Cell, wheels	$1,397,200
Cell, rims	1,575,000
Cell, bearings	2,286,550

Required:

1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent.

Wheels	$___ per unit
Rims	$___ per unit
Bearings	$____ 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
Rims	$___ per unit
Bearings	$___ per unit