QS 8-8 (Algo) Direct materials price and quantity variances LO P3

QS 8-8 (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) Actual direct materials used (AQ) Actual units produced Actual cost of direct materials used AQ Actual Quantity SQ = Standard Quantity AP - Actual Price SP = Standard Price $ 8 per unit 000 pounds 300, 61, 000 units $ 525, ooo Compute the direct materials price and quantity variances and identify each as favorable or unfavorable. Actual Co tandar Cos