Prior to Installing a JIT System, Clark Company Used Machine

question 31

Multiple Choice

Prior to installing a JIT system, Clark Company used machine hours to assign maintenance costs to its three products of 4-cm, 6-cm, and 9-cm insulation. The maintenance costs totalled $400,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:
$\begin{array}{lcc} &\underline{\text {Machine Hours}}& \underline{\text {Quantity Produced}}\\4 \mathrm{~cm} & 12,000 & 31,250 \mathrm{rolls} \\6 \mathrm{~cm} &20,000 & 25,000 \mathrm{rolls} \\9 \mathrm{~cm} & 18,000 &12,000 \mathrm{rolls}\end{array}$ After installing JIT,three manufacturing cells were created and the cell workers were trained to perform maintenance.Maintenance costs for the three cells still totalled $400,000; however,these costs are now traceable to each cell.
$$\begin{array} { c r } \text { Cell } 4 \mathrm {~cm} & \$ 100,000 \\\text { Cell, } 6 \mathrm {~cm} & 120,000 \\\text { Cell } 9 \mathrm {~cm} & 180,000\end{array}$$
-Refer to the figure.What would be the maintenance cost per roll of 6-cm insulation before JIT is installed?

• A)$6.40
• B)$9.33
• C)$16.00
• D)$20.00

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Definitions:

Gestalt

A concept from psychology suggesting that the mind understands and interprets holistic patterns and configurations rather than just simple aggregations of parts or elements.

Visual Stimulus

Any sight or image that may influence or prompt a response from an observer.

Behaviorism

A theoretical outlook within psychology that emphasizes the study of observable behaviors, rather than internal mental states, as the primary source of psychological data.

Hybrid Brain

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