Prior to installing a JIT system, Plasticize Company used machine hours to assign maintenance costs to its three products of 3-inch, 5-inch, and 7-inch plastic tubing.
The maintenance costs totaled $120,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:
After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $120,000; however, these costs are now traceable to each cell.
Required:

Question

Prior to installing a JIT system, Plasticize Company used machine hours to assign maintenance costs to its three products of 3-inch, 5-inch, and 7-inch plastic tubing.
The maintenance costs totaled $120,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:
  After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $120,000; however, these costs are now traceable to each cell.
  Required:

Quizplus · Accepted Answer

The Answer of Prior to installing a JIT system, Plasticize Company used machine hours to assign maintenance costs to its three products of 3-inch, 5-inch, and 7-inch plastic tubing.
The maintenance costs totaled $120,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:
  After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $120,000; however, these costs are now traceable to each cell.
  Required:

Prior to Installing a JIT System, Plasticize Company Used Machine