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 AP Actual Price SP Standard Quantity Standard Price $ 12 per unit 390,000 pounds 69,000 units $ 975,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Cost x x X x Standard Cost