Prior to installing a JIT system, Johnson 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 $540,000 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 $540,000; however, these costs are now traceable to each cell.
Required:
Definitions:
Decimal Places
The number of digits to the right of the decimal point in a number, indicating the precision of the value.
Primary Key
A unique identifier used in databases to distinguish each record or row in a table.
Short Text
A brief and concise string of words, often used for titles, labels, or simple descriptions.
Long Integer
A data type in computer programming that stores larger integer values compared to a standard integer type, varying by programming language.
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