A company reports the following for one of its products. Direct materials standard (3 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 $ 6 per unit 310,000 pounds 70,000 units $ 527,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost Standard Cost