Prior to installing a JIT system, Buckner Company, a producer of automobile parts, used maintenance...
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Accounting
Prior to installing a JIT system, Buckner Company, a producer of automobile parts, used maintenance hours to assign maintenance costs to its three products (wheels, rims, and ball bearings). The maintenance costs totaled $6,310,290 per year. The maintenance hours used by each product and the quantity of each product produced are as follows: Maintenance Hours Quantity Produced Wheels 186,000 162,750 Rims 186,000 162.750 Bearings 225,000 196,875 After installing JIT, three manufacturing cells were created, and cell workers were trained to perform preventive maintenance and minor repairs. A full-time maintenance person was also assigned to each cell. Maintenance costs for the three cells still totaled $6,310,290; however, these costs are now traceable to each cell as follows: Cell, wheels $1,807,620 Cell, rims 1,966,020 Cell, bearings 2,536,650 Required: 1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent. Wheels per unit Rims per unit Bearings $ per unit 2. Compute the maintenance cost per unit for each product after installing JIT. If required, round your answers to the nearest cent. Wheels $ per unit Rims $ per unit Bearings $ per unit
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