Lakewood Inc. uses a standard cost system. Materials standards are 7 components per widget at $8 per component. During August. Lakewood Inc. purchased 66,000 components for $524,600, using the components to produce 8,800 widgets. a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Price Variance 69,400 Favorable b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable". "Unfavorable", or "None" for no effect (i.e., zero variance).) Quantity Variance $ 39.600 Favorable