Direct materials standard (3 lbs. $2 per lb.) Actual direct materials used (1) Actual finished units produced Actual cost of direct materials used $ 6 per finished unit 260,000 lbs. 70,000 units $455,000 AQ - Actual Quantity SQ = Standard Quantity AP - Actual Price SP Standard Price Compute the direct materials price and quantity variances and classify each as favorable, unfavorable or no variance. Actual Cost Standard Cost