A company reports the following for one of its products. Direct materials standard (4 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 = Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x X $ 8 per unit 320,000 pounds 63,000 units $ 576,000 X Standard Cost X X

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