East Texas Seasonings Is Preparing to Build One Processing Center

question 99

Essay

East Texas Seasonings is preparing to build one processing center to serve its four sources of seasonings.The four source locations are at coordinates shown below.Also,the volume from each source is provided.
a.Calculate the volume-weighted center of gravity.
b.Calculate the simple center of gravity (all cities weighted equally).
c.Explain why the two calculations differ.

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Definitions:

Variable Costing

Variable costing is a costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Fixed Manufacturing Overhead

Consistent costs associated with manufacturing that do not vary with the level of production, such as rent and salaries of managers.

Variable Costing

An accounting method that charges all variable production costs directly to the cost of production, excluding fixed overhead costs from product costing.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of managers, and depreciation of equipment.