Solved

Prior to Installing a JIT System, Grindstone Company Used Machine

Question 122

Multiple Choice

Prior to installing a JIT system, Grindstone 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 $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Prior to installing a JIT system, Grindstone 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 $432,000 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 $432,000; however, these costs are now traceable to each cell. The maintenance cost per roll of 9-inch insulation before JIT is installed would be A) $7.75. B) $11.25. C) $14.00. D) $30.00. 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 $432,000; however, these costs are now traceable to each cell.
Prior to installing a JIT system, Grindstone 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 $432,000 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 $432,000; however, these costs are now traceable to each cell. The maintenance cost per roll of 9-inch insulation before JIT is installed would be A) $7.75. B) $11.25. C) $14.00. D) $30.00. The maintenance cost per roll of 9-inch insulation before JIT is installed would be


A) $7.75.
B) $11.25.
C) $14.00.
D) $30.00.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: Exploiting supplier linkages is the exploitation of

Q29: Life-cycle costs are all costs associated with

Q42: The structural and executional factors that determine

Q44: Which of the following manufacturing costs is

Q49: Which of the life-cycle viewpoints is the

Q70: JIT manufacturing differs from traditional manufacturing in

Q75: The operational activity of inspecting is classified

Q112: Acceptable quality level (AQL) allows defects to

Q119: The manufacturing which reduces inventory levels because

Q125: Clinton Corp. is a manufacturer of equipment