Table 99
the Administration Department of a Small College Is Now

question 53

Multiple Choice

Table 9.9
The administration department of a small college is now designing its layout for newly built office space. From statistical samplings over the last three months, the following trip matrix was developed for daily trips between departments.
Trip Matrix (trips/day)
$$\begin{array} { | c | c | c | c | c | c | c | } \hline & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } & \mathrm { E } & \mathrm { F } \\\hline \mathrm { A } & - & 10 & 75 & & & 140 \\\mathrm {~B} & & - & & & 95 & \\\mathrm { C } & & & - & & 130 & 130 \\\mathrm { D } & & & & - & 10 & \\\mathrm { E } & & & & & - & 95 \\\mathrm {~F} & & & & & & - \\\hline\end{array}$$
-Use the information in Table 9.9.If other factors are all equal,which two offices should be located most closely?

• A) C and E
• B) C and F
• C) E and F
• D) A and F

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Definitions:

Cost of Goods Manufactured

The total production cost incurred by a company to manufacture products in a specific period, including materials, labor, and overhead costs.

Underapplied Manufacturing Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are more than the actual overhead expenses incurred.

Manufacturing Overhead Applied

The amount of indirect production costs allocated to individual units of output, based on a predetermined overhead rate.