QS 23-8 Materials variances LO P3 Tercer reports the following for one of its products. Direct materials standard (4 lbs. @ $2 per lb.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used $ 8 per finished unit 300,000 lbs. 60,000 units $540,000 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 AP SP SQ X SP AQ 300,000 AQ 300,000 X X $ 0 $ 0 HA 0 0