A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) Actual direct materials used Actual units produced Actual cost of direct materials used $ 8 per unit 300,000 pounds 60,000 units $ 540,000 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. Actual Cost Standard Cost AQ AP AQ 300,000 $ 0 $ 0 $ 0 0