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)	390,000	pounds
Actual units produced	69,000	units
Actual cost of direct materials used	$ 975,000

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.