(1) O O Actual price O Actual quantity purchased O Actual quantity used O Standard hours allowed Standard price O Standard quantity allowed (2) O Actual price O Actual quantity purchased O Actual quantity used Standard hours allowed Standard price Standard quantity allowed (4) (3) a O Actual price Actual quantity purchased O Actual quantity used Ooo Standard hours allowed O Standard price Standard quantity allowed OF OU (5) O O Actual price O Actual quantity purchased O Actual quantity used O Standard hours allowed O Standard price Standard quantity allowed (6) O Actual price O Actual quantity purchased O Actual quantity used O Standard hours allowed Standard price O Standard quantity allowed (7) (8) O Actual price O Actual quantity purchased O Actual quantity used Standard hours allowed Standard price O Standard quantity allowed (9) O favorable O unfavorable OU OF (10) higher-quality alloy at a higher price O lower-quality alloy at a lower price (11) O had to use more was able to use less (12) O unfavorable O favorable Requirement 1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that World Class Rings purchased last month is $ Requirement 2. What is the direct material price variance? (Abbreviations used: DM = Direct materials) Begin by determining the formula for the price variance, then compute the price variance for direct materials. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) (1) X( (2) (3) DM price variance (4) Requirement 3. What is the direct material quantity variance? (Abbreviations used: DM = Direct materials) Determine the formula for the quantity variance, then compute the quantity variance for direct materials. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) - (5) x (6) (7) ) DM quantity variance X (8) Requirement 4. How might the direct material price variance for the company last month be causing the direct material quantity variance? The (9) direct material price variance might mean that World Class Rings purchased a (10) As a result, the company (11) alloy than the standard allows. This accounts for the (12) quantity (efficiency) variance. (1) O O Actual price O Actual quantity purchased Actual quantity used O Standard hours allowed Standard price Standard quantity allowed (2) O Actual price Actual quantity purchased Actual quantity used O Standard hours allowed Standard price O Standard quantity allowed Ring World produces class rings. Its best-selling model has a direct materials standard of 8 grams of a special alloy per ring. This special alloy has a standard costo $64.10 per gram. In the past month, the company purchased 8,800 grams of this alloy at a total cost of $563,200. A total of 8,200 grams were used last month to produce 1,000 rings. Read the requirements. Requirement 1. What is the actual cost per gram of the special alloy that Ring World purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that Ring World purchased last month is - X Requirements 1. What is the actual cost per gram of the special alloy that Ring World purchased last month? 2. What is the direct material price variance? 3. What is the direct material quantity variance? 4. How might the direct material price variance for the company last month be causing the direct material quantity variance
