A company reports the following for one of its products. Direct materials standard (3 pounds (9 $3 per pound) $ 9 per unit Actual direct materials used (A0) 270,000 pounds Actual units produced 71,000 units Actual cost of direct materials used $ 742,500 A0 = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable