A company reports the following for one of its products.

Direct materials standard $(3$ pounds @ $$3$ per pound$)$ $ $9$ per unit

Actual direct materials used $($AQ$)270,000$ pounds

Actual units produced $71,000$ units

Actual cost of direct materials used $ $742,500$

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.