Prior to Installing a JIT System, Charlotte Company Used Machine

question 6

Essay

Prior to installing a JIT system, Charlotte Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 8-inch plastic pipe.
The maintenance costs totaled $120,000 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 $120,000; however, these costs are now traceable to each cell.
Required:

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Definitions:

Average

A statistical measure referring to the mean or central tendency of a set of numbers.

Pulsating

Describes a physical or electrical effect that occurs in intervals, typically experienced as oscillations or vibrations.

Sine

A mathematical function that describes the ratio of the length of the opposite side to the length of the hypotenuse in a right-angled triangle, often related to waveforms in physics.

Linear

When used in comparing electric devices or quantities, signifies that one unit is equal to another.