Tercer reports the following for one of its products Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used (10) Actual finished units produced Actual cost of direct materials used 8 per finished unit 320,000 lbs. 62,000 units $560,000 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