Assume that a company has recently switched to JIT manufacturing. Each manufacturing cell produces a single product or major subassembly. Cell workers have been trained to perform a variety of tasks. Additionally, many services have been decentralized. Costs are assigned to products using direct tracing, driver tracing, and allocation. For each cost listed, indicate the most likely product cost assignment method used before JIT and after JIT. Set up a table with three columns: Cost Item, Before JIT, and After JIT. You may assume that direct tracing is used whenever possible, followed by driver tracing, with allocation being the method of last resort. Inspection costs Power to heat, light, and cool plant Minor repairs on production equipment Salary of production supervisor (department/cell) Oil to lubricate machinery Salary of plant supervisor Costs to set up machinery Salaries of janitors Power to operate production equipment Taxes on plant and equipment Depreciation on production equipment Raw materials Salary of industrial engineer Parts for machinery Pencils and paper clips for production supervisor (department/cell) Insurance on plant and equipment Overtime wages for cell workers Plant depreciation Materials handling Preventive maintenance Use the table below for your answer: DA = Direct attribution (tracing) DT = Driver tracing AL = Allocation cost item before JIT after JIT
Assume that a company has recently switched to JIT manufacturing. Each manufacturing cell produces a single product or major subassembly. Cell workers have been trained to perform a variety of tasks. Additionally, many services have been decentralized. Costs are assigned to products using direct tracing, driver tracing, and allocation. For each cost listed, indicate the most likely product cost assignment method used before JIT and after JIT. Set up a table with three columns: Cost Item, Before JIT, and After JIT. You may assume that direct tracing is used whenever possible, followed by driver tracing, with allocation being the method of last resort.
Inspection costs
Power to heat, light, and cool plant
Minor repairs on production equipment
Salary of production supervisor (department/cell)
Oil to lubricate machinery
Salary of plant supervisor
Costs to set up machinery
Salaries of janitors
Power to operate production equipment
Taxes on plant and equipment
Raw materials
Salary of industrial engineer
Parts for machinery
Pencils and paper clips for production supervisor (department/cell)
Insurance on plant and equipment
Overtime wages for cell workers
Plant depreciation
Materials handling
Preventive maintenance
Use the table below for your answer:
DA = Direct attribution (tracing)
DT = Driver tracing
AL = Allocation
| cost item | before JIT | after JIT |
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