Prior to Installing a JIT System, Reilly Company Used Machine

question 37

Multiple Choice

Prior to installing a JIT system, Reilly Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation.The maintenance costs totaled $420,000 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 $420,000; however, these costs are now traceable to each cell.
The maintenance cost per roll of 4-inch insulation before JIT is installed would be

• A) $12.00.
• B) $8.75.
• C) $7.00.
• D) $6.58.

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Definitions:

Visual Acuity

The sharpness of vision, measured by the ability to discern letters or numbers at a given distance according to a fixed standard.

Proximodistal

Proximodistal describes a pattern of development in human growth where control and growth spread outward from the central axis of the body towards the extremities.

Neuron's Cell Body

The part of a neuron that contains the nucleus and most of the cell's organelles, responsible for metabolic activities.

Neurotransmitters

Biochemical compounds in the brain that facilitate the transmission of signals between neurons at synapse junctions.