Prior to Installing a JIT System, Clark Company Used Machine

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.

- After installing JIT, the maintenance cost per roll of 4-inch insulation would be

A) $1.28.
B) $2.56.
C) $2.84.
D) $3.20.

Correct Answer:

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