A company reports the following for one of its products. Direct materials standard (4 pounds @ $3 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 $12 per unit 350,000 pounds 70,000 units $910,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost Standard Cost