Prior to Installing a JIT System, Clarendon Company Used Machine

question 70

Multiple Choice

Prior to installing a JIT system, Clarendon Company used machine hours to assign maintenance costs to its three products of 6-inch, 8-inch, and 11-inch insulation. The maintenance costs totaled $400,000 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 $400,000; however, these costs are now traceable to each cell.
The maintenance cost per roll of 8-inch insulation before JIT is installed would be

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

---

Definitions:

Childproof Caps

Safety-designed caps used on medicine and hazardous substance containers to prevent access by children.

Mandatory Helmets

Laws or regulations requiring the wearing of helmets for certain activities, such as bicycling or motorcycle riding, to reduce the risk of head injuries.

Firearms

Weapons that launch one or more projectiles at high velocity through the confined burning of a propellant.

Immunizations

The method of providing immunity or resistance to infectious diseases in individuals, usually through the application of vaccinations.