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 340,000 pounds 65,000 units $ 612,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost AQ x AP 340,000 x $ 0 AQ SP 340,000 x $ 0 0 $ 0 Standard Cost SQ SP x