Continuous improvement the Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2009, the standard direct material cost is $45 par unit and the standard direct manufacturing labor cost is $15 per unit Due to more efficient operations, the standard quantities for February 2009 are set at 0.988 of the standard quantities for January. In March 2009, the standard quantities are set at 0.988 of the standard quantities for February 2009. Assume the same information for March 2009 as in Exercise 7-24, except for these revised standard quantities.

1.         Compute the March 2009 standard quantities for direct materials and direct manufacturing labor.

2.         Compute the March 2009 price and efficiency variances for direct materials and direct manufacturing labor.