Use the Data Shown Below to Answer the Following Question(s)

question 97

Essay

Use the data shown below to answer the following question(s).
Suppose that an unincorporated township wishes to find the best locations for emergency rooms.Assume that the township is divided into smaller layouts and that transportation studies have estimated the response time for emergency vehicles to travel between each pair of layouts.The township wants to locate the emergency rooms so that all layouts can be reached within a 9-minute response time.
The table below shows the estimated response time in minutes between each pair of layouts: Define X_j = 1 if an emergency room is located in layout j,and 0 if not.
-Determine the layouts' constraints.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) cost based on the actual level of activity.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.

Labor Rate Variance

The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production volume, resulting from efficiency in variable overhead resource usage.