World Class Rings produces class rings. Its best-selling model has a direct materials standard of 16 grams of a special alloy per ring. This special alloy has a standard cost of $63.30 per gram. In the past month, the company purchased 16,800 grams of this alloy at a total cost of $1,061,760. A total of 16,300 grams were used last month to produce 1,000 rings. Read the requirements The actual cost per gram of the special alloy that World Class Rings purchased last month is $ 63.20 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 cont and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorablo (U).) DM price variance * 5 1,680 F + and then clink Check Answer ngs. Its best-selling model has a direct materials standard X i Requirements 1. What is the actual cost per gram of the special alloy that World Class Rings 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? Print Done