QS 21-7 (Algo) Direct materials variances LO P3 A company reports the following for one of its products. Direct materials standard (10 pounds & $6 per pound) $ 60 per unit Actual units produced 40,000 units Actual cont of direct materials used $ 2,438,000 Compute the total direct materials variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Direct materials variance