Tercer reports the following for one of its products. Direct materials standard (4 lbs. $3 per 1b.) 12 per finished unit Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used 330,000 lbs. 68,000 units $907,500 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 Standard Cost SQ AQ AP AQ SP SP 330.0001- - 3.051 244,000 330,00 x 330,000 X 2.75 3.00 3.00 907,500 990,000 732,000 $82,500 258,000 SQ = Standard Quantity AP = Actual Price SP = Standard Price Compute the direct materials price and quantity variances and classify each as favorable or ur Actual Cost Standard Cost AQ AP AQ SP SQ SP 330 330,000X3.0o 2.15 907,500 990,000 $82,500 Direct materials price variance Direct materials quantity variance Total direct materials variance $82,500 Favorable o Unfavorable nfavorable