Drogheda Chemical adopts a continuous improvement approach to setting monthly standards’ costs. Assume the direct materials standard quantity input of 10 kg per output unit and the direct manufacturing labour quantity input of 0.5 hours per output unit pertain to January 2022. The standard amounts for February 2022 are 0.997 of the January standard amount. The standard amounts for March 2022 are 0.997 of the February standard amount. Assume the same information for March 2022 as in Exercise15.18 except for these revised standard amounts.

Required

1 Calculate the March 2022 standard quantity input amounts per output unit for direct materials and direct manufacturing labour.
2 Calculate the March 2022 price and efficiency variances of direct materials and direct manufacturing labour.