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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.

1. Inspection costs

2. Power to heat, light, and cool plant

3. Minor repairs on production equipment

4. Salary of production supervisor (department/cell)

5. Oil to lubricate machinery

6. Salary of plant supervisor

7. Costs to set up machinery

8. Salaries of janitors

9. Power to operate production equipment

10. Taxes on plant and equipment

11. Depreciation on production equipment

12. Raw materials

13. Salary of industrial engineer

14. Parts for machinery

15. Pencils and paper clips for production supervisor (department/cell)

16. Insurance on plant and equipment

17. Overtime wages for cell workers

18. Plant depreciation

19. Materials handling

20. Preventive maintenance

Use the table below for your answer:

DA = Direct attribution (tracing)

DT = Driver tracing

AL = Allocation

Cost item/ Before JIT / After JIT

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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