Quantity Variance Assignment | Top Universities

University Rings produces class rings. Its best-selling model has a direct materials standard of 13 grams of a special alloy per ring. This special alloy has a standard cost of $64.70 per gram. In the past month, the company purchased 14,000 grams of this alloy at a total cost of $898,800. A total of 13,600 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 University Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that University Rings purchased last month is $ L. 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).)

Actual quantity purchased 7,700 x x( $ Actual price 65.20 Standard price 65.70 $ ) = DM price variance ) = $ 3.850 F 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).) Standard price 65.70 x( Actual quantity used x 7,500 Standard quantity allowed 7,000 ) = DM quantity variance J = $ 32,850. U We were unable to transcribe this image requirements 1. What is the actual cost per gram of the special alloy that University 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. Get Accounting homework help today