A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) $ 8 per unit Actual direct materials used (AQ) 400, 000 pounds Actual units produced 70, 000 units Actual cost of direct materials used $ 700, 000 AQ = 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. X Answer is complete but not entirely correct. Actual Cost Standard Cost AQ V X AP AQ V X SP SQ X SP 67,000 X X $ 15.00 67,000 X $ X X X 14.00 68,200 X $ 14.00 X 1,005,000 X $ 938,000 $ 954,800 $ 67,000 $ 16,800 Direct labor rate variance X 67,000 Unfavorable X Direct labor efficiency variance X 16,800 Favorable X Total variable overhead cost variance x $ 50 200 % I Infavorable