A company reports the following for one of its products. Direct materials standard (4 pounds @ $3 per pound) $ 12 per unit Actual direct materials used (AQ) 370,000 pounds Actual units produced 75,000 units Actual cost of direct materials used $ 999,000 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.