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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Definitions:

Psychological

Pertains to the mind and emotions, often relating to mental processes and wellbeing.

Insurance Parity Laws

Regulations that require insurance companies to provide the same level of coverage for mental health treatment as they do for medical or surgical treatments.

Equal Coverage

A term often used in healthcare and insurance, indicating that all individuals or conditions are provided with the same level of insurance protection or healthcare services.

Mental Problems

A wide variety of mental disorders that impact one's emotions, cognitive processes, and actions.