Exhibit 3.1 The Following Questions Are Based on This Problem and Accompanying

question 29

Multiple Choice

Exhibit 3.1
The following questions are based on this problem and accompanying Excel windows.
Jones Furniture Company produces beds and desks for college students. The production process requires carpentry and varnishing. Each bed requires 6 hours of carpentry and 4 hour of varnishing. Each desk requires 4 hours of carpentry and 8 hours of varnishing. There are 36 hours of carpentry time and 40 hours of varnishing time available. Beds generate $30 of profit and desks generate $40 of profit. Demand for desks is limited, so at most 8 will be produced. The LP model for the problem is
-Refer to Exhibit 3.1. Which cells should be the constraint cells in this problem?

• A) B4:C4
• B) E5
• C) D8:D10
• D) E8:E10

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Definitions:

Factory Utilities

Expenses associated with the utilities consumed in a factory, such as electricity, gas, and water, used during the manufacturing process.

Overhead Allocation Base

A measure or criterion used to distribute overhead costs among various products, services, or departments.

Direct Labor Hours

These hours represent the amount of time worked directly on the production of goods or services, used to allocate labor costs to products or services.

Departmental Overhead Method

A technique in accounting used to allocate overhead costs to specific departments based on relevant allocation bases such as direct labor hours or machine hours.