A company reports the following for one of its products. Direct materials standard (4 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 Actual Cost Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. X X 0 $ 0 + $ 0 0 X $12 per unit 390,000 pounds 69,000 units X $ 975,000 $ 0 A Standard Cost X X

A company reports the following for one of its products. Direct materials standard (4 pounds e $3 per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct naterials used $12perunit390,peepounds69,eaeunits$975,eee AQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice Compute the direct materials price and quantity variances and identify each as favorable or unfovorable