Q1.

ChemKing uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material purchased and used cost $105,000, and two units of raw material are required to produce one unit of final product. In November, the company produced 12,000 units of product. The budgeted production for November was 14,000, and there was an unfavorable static budget variance of $35,000. What was ChemKing’s direct materials price variance?

Q2.

Sullivan Corporation’s direct labor costs for the month of March were as follows:
Standard direct labor hours 42,000
Actual direct labor hours 40,000
Direct labor rate variance – unfavorable $8,400
Standard direct labor rate per hour $6.30
What was Sullivan’s total direct labor payroll for the month of March?