A company reports the following for one of its products. Direct materials standard (4 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 $8 per unit 400,000 pounds 70,000 units $ 700,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost Standard Cost