A company reports the following for one of its products. Direct materials standard (5 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 Actual Cost X $10 per unit Compute the direct materials price and quantity variances and Identify each as favorable or unfavorable. X 380,000 pounds 65,000 units $ 703,000 Standard Cost X

Compute the direct materials price and quantity variances and idenuty each as favorable or unfavorable