Tally-Ho reports the direct materials standard as 6 lbs per unit at $2.50 per lb, which is $15 per finished unit. Actual direct materials used were 45,000 lbs for 8,000 units produced. The actual cost of direct materials was $125,000. Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. Explain what each variances tells you about the company