A company reports the following for one of its products. Direct materials standard (5 pounds @ $2 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ = Actual Quantity SQ = Standard Quantity AP Actual Price == SP Standard Price = $ 10 per unit 380,000 pounds 65,000 units $ 703,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x 0 0 0 0 x $ + Standard Cost