Continuous improvement (continuation of 7-29). Chemical, Inc., adopts a continuous improvement approach to setting monthly standards costs. Assume the direct materials stan¬

dard quantity input of ten kilograms per output unit and the direct manufacturing labour quantity input of 0.5 hours per output unit pertain to January 2007. The standard amounts for February 2007 are 0.997 of the January standard amount. The standard amounts for March 2007 are 0.997 of the February standard amount. Assume the same information for March 2007 as in Exercise 7-29 except fof these revised standard amounts.

Required 1. Compute the March 2007 standard quantity input amounts per output unit for direct materials and direct manufacturing labour.

2. Compute the March 2007 price and efficiency variances of direct materials and direct manufacturing labour.