# CVJI 63.doc

Hampton Roads Company produces a chair that requires 5 yards of materials per unit. The standard price one yard of material is \$7.50. During the month, 8,500 chairs were manufactured, using 43,700 yards at a cost of \$7.30. Determine the (a) price variance, (b) quantity variance, and (c) cost variance
35.
Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly standard rate of \$15 per hour. If 7,700 units required 17,550 hours at an hourly rate of \$15.20 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance.
36.
A department store apportions payroll costs on the basis of the number of payroll checks issued. The payroll costs for the year were \$231,000. Department R issues 483 payroll checks; Department S issues1,470 payroll checks; and Department T issues 147 payroll checks. Determine the amount of payroll costs charged to each department.
37.
Determine the average rate of return for a project that is estimated to yield total income of \$250,000 over four years, cost \$480,000, and has a \$20,000 residual value.
38.
Continental Styles, Inc. has three activity cost pools: cutting, sewing, and setup. The total overhead cost for each pool is: cutting, \$120,000, sewing, \$60,000, and setup, \$100,000. Continental manufactures two types of menâ€™s pants: jeans and khakis. The activity-base usage quantities for each product by activity are as follows:
Cutting Sewing Setup
Jeans 1,000 DLH 2,000 DLH 1,600 setups
Khakis 2,000 1,000 400

(a) Calculate the activity rate for each activity.
(b) How much of the cutting, sewing and setup costs will be assigned to the jeans? If 20,000 units are budgeted for production, what is the factory overhead cost per unit?
(c) How much of the cutting, sewing and setup costs will be assigned to the khakis? If 20,000 units are budgeted for production, what is the factory overhead cost per unit?