#6

A company reports the following for one of its products. Direct materials standard (3 pounds @ \$2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used $6 per unit 310,000 pounds 70,000 units $527,000 AQ= Actual Quantity SQ= Standard Quantity AP= Actual Price SP= Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable