A company reports the following for one of its products. Direct materials standard (3 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 $ 9 per unit 250,000 pounds 60,000 units $ 687,500 SP Standard Price Compute the direct materials price and quantity variances and Identify each as favorable or unfavorable. Actual Cost Standard Cost