Prior to Installing a JIT System,Johnson Company Used Machine Hours

question 46

Essay

Prior to installing a JIT system,Johnson Company used machine hours to assign maintenance costs to its three products of 4-cm,6-cm,and 8-cm plastic pipe.
The maintenance costs totalled $540,000 per year.The machine hours used by each product and the quantity produced of each product are as follows:
$\begin{array}{lll}&\text { Machine Hours }&\text {Quantity Produced }\\4 \mathrm{~cm} & 10,000 & 3,750 \mathrm{rolls} \\6 \mathrm{~cm} & 14,000 & 4,000 \mathrm{rolls} \\8 \mathrm{~cm} & 21.000 & 5,000 \mathrm{rolls}\end{array}$ 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 $540,000; however,these costs are now traceable to each cell.
$\begin{array}{lr}\text { Cell, } 4 \mathrm{~cm} & \$ 90,000 \\\text { Cell, } 6 \mathrm{~cm} & 160,000 \\\text { Cell } 8 \mathrm{~cm} & 290,000\end{array}$
a.Compute the maintenance cost per roll for each type of pipe before JIT is installed.
b.Compute the maintenance cost per roll for each type of pipe after JIT is installed.
c.Explain why the JIT maintenance cost per roll is more accurate than the cost per roll using the traditional approach.

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Definitions:

Secondary Circular Reactions

Repetitive actions in infants aged 4-8 months, centered around the infant's own body, demonstrating the beginning of intentionality.

Primary Circular Reactions

A concept in child development where an infant learns to reproduce an event that initially occurred by accident (e.g., sucking their thumb).

Centration

A cognitive limitation in early childhood, where a child focuses on one aspect of a situation while ignoring others.

Neural-Visual Network

A system in the brain that processes visual information, integrating it with neural signals for perception and understanding.