Problem $6$

Continuous Improvement $($continuation of $7-29,16$th ed$.).$ The Schuyler Corporation sets

costs using a continuous$-$improvement approach. In January $2017,$ the standard direct material

cost is $$45$ per unit and the standard direct manufacturing labor cost is $$15$ per unit. Due to more

efficient operations, the standard quantities for February $2017$ are set at $0\mathrm{.}988$ of the standard

quantities for January. In March $2017,$ the standard quantities are set are set at $0\mathrm{.}988$ of the

standard quantities for February $2017.$ Assume the same information for March $2017$ as in

Exercise $7-29(16$th ed$.),$ except for these revised standard quantities.

Required:

$1.$ Compute the March $2017$ standard quantities for direct materials and direct

manufacturing labor.

$2.$ Compute the March $2017$ price and efficiency variances for direct materials and direct

manufacturing labor.