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Need help with this question by June 13th JIT Features and Product Costing Accuracy Prior to installing a JIT system, Barker Company, a producer of
Need help with this question by June 13th
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 $5,880,000 per year. The maintenance hours used by each product and the quantity of each product produced are as follows: 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 $5,880,000; however, these costs are now traceable to each cell as follows: Required: 1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent. Wheels$ _________________ per unit Pads$ _________________ per unit 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 Pads$ _________________ per unit Bearings$ _________________ per unit
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 $5,880,000 per year. The maintenance hours used by each product and the quantity of each product produced are as follows: 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 $5,880,000; however, these costs are now traceable to each cell as follows: Required: 1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent. Wheels\t$ _________________ per unit Pads\t$ _________________ per unit Bearings\t$ _________________ 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\t$ _________________ per unit Pads\t$ _________________ per unit Bearings\t$ _________________ per unitStep by Step Solution
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