QS 21-8 (Algo) Direct materials price and quantity variances LO P3 A company reports the following for one of its products. Direct materials standard (4 pounds @ $2 per pound) $ 8 per unit Actual direct materials used (AQ) 300,000 pounds Actual units produced 61,000 units Actual cost of direct materials used $ 525,000 AQ - Actual Quantity SQ = Standard Quantity AP - Actual Price SP - Standard Price Compute the direct materials price and quantity variances and identify each as favorable or unfavorable Standard Cost Actual Cost 0 $ 0 0 $ 0