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 AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price $8 per unit 300,000 pounds 60,000 units $540,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost 0 $ 0 0 $ Standard Cost