Prior to Installing a JIT System, Clarendon Company Used Machine

question 129

Multiple Choice

Prior to installing a JIT system, Clarendon Company used machine hours to assign maintenance costs to its three products of 6-inch, 8-inch, and 11-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.
Cell, 6-inch $100,000
Cell, 8-inch 120,000
Cell, 11-inch 180,000
The maintenance cost per roll of 8-inch insulation before JIT is installed would be

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

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Definitions:

Cognitive Development

Refers to the process of growth and change in intellectual capabilities, such as thinking, reasoning, and understanding, across the lifespan.

Egocentrism

A cognitive trait where an individual is unable to differentiate between their own perspective and that of others, often observed in children.

Abstract Thought

Abstract thought is the ability to think about objects, principles, and ideas that are not physically present, involving complex processes such as problem-solving and theorizing.

Centration

A cognitive limitation in early childhood, where a child focuses only on one aspect of a situation and ignores other relevant aspects.