A company reports the following for one of its products. Direct materials standard (3 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 $ 9 per unit 270,000 pounds. 71,000 units $ 742,500 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost M x Standard Cost