Continuous improvement (continuation of 7-24). The Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2012, 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 2012 are set at 0.980 of the standard quantities for January. In March 2012, the standard quantities are set at 0.990 of the standard quantities for February 2012. Assume the same information for March 2012 as in Exercise 7-24, except for these revised standard quantities. 1. Compute the March 2012 standard quantities for direct materials and direct manufacturing labor (to Required three decimal places). 2. Compute the March 2012 price and efficiency variances for direct materials and direct manufacturing labor (round to the nearest dollar)

7-24 Price and efficiency variances, journal entries. The Monroe Corporation manufactures lamps. It has set up th Direct materials: 10 lb. at S4.50 per lb Direct manufacturing labor: 0.5 hour at $30 per hour $45.00 15.00 The number of finished units budgeted for January 2012 was 10,000; 9,850 units were actually produced. ctual results in January 2012 were as follows Direct materials: 98,055 b used Direct manufacturing labor: 4,900 hours 154,350 Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to 100,000 lb., at a total cost of S465,000. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage 1. Compute the January 2012 price and efficiency variances of direct materials and direct manufactur Re ing labor 2. Prepare journal entries to record the variances in requirement 1 3. Comment on the January 2012 price and efficiency variances of Monroe Corporation 4. Why might Monroe calculate direct materials price variances and direct materials efficiency vari- ances with reference to different points in time? 7-25 Continuous improvement (continuation of 7-24). The Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2012, the standard direct material cost is S45 per unit and the standard direct manufacturing labor cost is S15 per unit. Due to more efficient operations, the standard quantities for February 2012 are set at 0.980 of the standard quantities for January. In March 2012, the standard quantities are set at 0 990 of the standard quantities for February 2012 Assume the same infor PRI REX AND POLIT USED