Required:1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent.per unitper unitper unitWheelsRimsBearings2. Compute the maintenance cost per unit for each product after installing JIT. If required, round your answers to the nearest cent.WheelsRimsBearingsper unitper unitper unit JIT Features and Product Costing AccuracyPrior to installing a JIT system, Buckner Company, a producer of automobile parts, used maintenance hours to assign maintenance costs to itsthree products (wheels, rims, and ball bearings). The maintenance costs totaled $6,277,390 per year. The maintenance hours used by eachproduct and the quantity of each product produced are as follows:Maintenance Hours Quantity ProducedWheels141,750141,750Bearings203,875After 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 $6,277,390; however, thesecosts are now traceable to each cell as follows:Rims162,000162,000233,000Cell, wheelsCell, rimsCell, bearings$1,647,9401,825,7402,803,710

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Description: Required:1. Compute the pre-JIT maintenance cost per unit for each product. If required, round your answers to the nearest cent.per unitper unitper unitWheelsRimsBearings2. Compute the maintenance cost per unit for each product after installing JIT.

A predefined over head rate is an allocation rate that is applied to cost items for a specified…

Business

Accounting

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. per unit per unit per unit Wheels Rims Bearings

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. per unit per unit per unit Wheels Rims Bearings

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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