QS 8-8 Materials variances LO P2 Tercer reports the following for one of its products. Direct materials standard (3 lbs. $3 per lb.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used 9 per finished unit 270,000 lbs 71,000 units $742,500 AQ Actual Quantity SO Standard Quantity AP Actual Price SP- Standard Price Compute the direct materials price and quantity variances and classify each as favorable or unfavorable Actual Cost Standard Cost