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A farmers' cooperative association plans to build a new sugar mill in Southwestern Louisiana. The primary objective of the mill is to provide the farmers with a place to take their crop for processing that will reduce their transportation costs. The members of the co-op believe that the center-of-gravity method is appropriate for this objective. While there are over 200 sugar cane farms in the region, they are tightly clustered around six villages. Using the data below, use the center-of-gravity method to calculate the coordinates of the best location for this mill. All mileage references use the city of Lake Charles as (0,0).
Labor Rate Variance
The difference between the actual hourly wage rate paid to workers and the expected or standard rate, affecting production costs.
Labor Rate Variance
The variance between the real hourly wage workers receive and the anticipated or usual wage rate, when multiplied by the total hours of work.
Labor Efficiency Variance
The variance between the real hours spent working and the anticipated standard hours, times the normal wage rate.
Standard Hours
The predetermined amount of time expected to complete a task or produce a unit of product under normal conditions.
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