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 ( 3 pounds \\( @ \\$ 2 \\) per pound) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used \\( A Q= \\) Actual Quantity \\( \\mathrm{SQ}= \\) Standard Quantity AP = Actual Price \\( \\mathrm{SP}= \\) Standard Price \\( \\$ 6 \\) per unit 260,000 pounds 70,000 units \\( \\$ 455,000 \\) \\( \\$ 6 \\) per unit 260,000 pounds 70,000 units \\( \\$ 455,000 \\) Compute the direct materials price and quantity variances and identify each as favorable or unfavorable