Prior to Installing a JIT System, Clark Company Used Machine

question 83

Multiple Choice

Prior to installing a JIT system, Clark 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 $400,000 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 $400,000; however, these costs are now traceable to each cell.

- The maintenance cost per roll of 6-inch insulation before JIT is installed would be

• A) $6.40.
• B) $9.33.
• C) $16.00.
• D) $20.00.

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Definitions:

Blinking

The rapid closing and opening of the eyelid, which is a reflex action to protect the eye from irritants.

Motor Skills

Abilities required to control the muscles and movements of the body, divided into fine (small movements) and gross (larger movements) motor skills.

Finely Tune

To make very small adjustments to something in order to achieve the best or desired performance.

Motivates

Provides reason or incentive for someone to act or behave in a certain way.