AQ=ActualQuantitySQ=StandardQuantityAP=ActualPriceSP=StandardPrice Compute the direct materials price and quantity variances and identify each as favorable or unfavorable

A company reports the following for one of its products. Direct materials standard (3 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 $ 6 per unit 000 pounds 260, 70, 000 units $ 455,000 Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. ctual o t Standard st