Prior to installing a JIT system, PVCTec Company used machine hours to assign maintenance costs to its three products of 9-inch, 11-inch, and 13-inch plastic pipe.
The maintenance costs totaled $540,000 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 $540,000; however, these costs are now traceable to each cell.
Required:

Question

Prior to installing a JIT system, PVCTec Company used machine hours to assign maintenance costs to its three products of 9-inch, 11-inch, and 13-inch plastic pipe.
The maintenance costs totaled $540,000 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 $540,000; however, these costs are now traceable to each cell.
  Required:

Quizplus · Accepted Answer

The Answer of Prior to installing a JIT system, PVCTec Company used machine hours to assign maintenance costs to its three products of 9-inch, 11-inch, and 13-inch plastic pipe.
The maintenance costs totaled $540,000 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 $540,000; however, these costs are now traceable to each cell.
  Required:

Prior to Installing a JIT System, PVCTec Company Used Machine