Prior to Installing a JIT System, Reilly Company Used Machine

question 23

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.

-After installing JIT, the maintenance cost per roll of 6-inch insulation is

• A) $6.67.
• B) $12.00.
• C) $10.85.
• D) $15.00.

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Pertaining to the impaired or abnormal functioning of a system, organ, or mechanism in a living organism or organization.