The Seneca Corpo-ration sets monthly standard costs using a continuous- improvement approach. In January 2013, the standard direct material cost is $ 54 per unit and the standard direct manufacturing labor cost is $ 14.50 per unit. Due to more efficient operations, the standard quantities for February 2013 are set at 0.980 of the standard quantities for January. In March 2013, the standard quantities are set at 0.990 of the standard quantities for February 2013. Assume the same information for March 2013 as in Exercise 13- 17, except for these revised standard quantities.
1. Compute the March 2013 standard quantities for direct materials and direct manufacturing labor (to three decimal places).
2. Compute the March 2013 price and efficiency variances for direct materials and direct manufacturing labor (round to the nearest dollar).