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.
Correct Answer:

Verified
Correct Answer:
Verified
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