Tercer reports the following for one of its products. Direct materials standard (4 lbs. @ $3 per lb.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used $ 12 per finished unit 390,000 lbs. 69, eee units $975,000 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 or unfavorable Actual Cost AQ AP AQ SP $ 3.00 Standard Cost SO X SP $ X 3.00 390,000 390,000 S 1,170,000 $ 1,170,000 $ 0 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 or unfavorable Actual Cost AP AQ X SP $ 3.00 Standard Cost SQ SP $ 3.00 390,000 390,000 $ 1,170,000 $ 1,170,000 $ 0 Direct materials price variance $ 1,170,000 Favorable Direct materials quantity variance Total direct materials variance Unfavorable Unfavorable