- A proposed new bus route is expected to require 12 new buses and to operate a total of 720,000 veh-km per year and 40,000 veh-h per year. Buses cost $210,000 each, have a 10-year life, and a salvage value after 10 years of $27,000 each. Operating costs include labor costs (wages, benefits, etc.) at $50.00 per veh-h, maintenance costs at $0.18 per veh-km, and cost of fuel, oil, tires, etc. at $0.42 per veh-km. Calculate the life-cycle cost (present value) of adding this route and operating it for 10 years, assuming an annual interest rate of 5 percent.

Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is: