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JIT Features and Product Costing Accuracy Prior to installing a JIT system, Barker Company, a producer of automobile parts, used maintenance hours to assign maintenance

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JIT Features and Product Costing Accuracy 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 $7,263,620 per year. The maintenance hours used by each product and the quantity of each product produced are as follows: Maintenance Hours Quantity Produced Wheels 197,000 172,375 Pads 197,000 172,375 Bearings 220,000 192,500 After installing IT, 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 $7,263,620; however, these costs are now traceable to each cell as follows: Cell, wheels $2,152,210 Cell, pads 2,330,510 2,780,900 Cell, bearings 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 Pads $ per unit per unit Bearings 2. Compute the maintenance cost per unit for each product after installing IT. If required, round your answers to the nearest cent. Wheels $ per unit Pads $ per unit per unit Bearings $

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