Tercer reports the following for one of its products, Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used (AQ) Actual finished units produced Actual cost of direct materials used $ per finished unit 320,000 lbs. 63,000 units $576,000 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 Answer is not complete. Actual Cost AQ 320,000 AP Standard Cost SQ X 63,000 3 320,000 2.00 040,000 120,000 640,000 514.000 Direct materials price variance Direct materials quantity variance Total direct materials variance 640,000 514,000 780,000 Favorable Unfavorable Unfavorable Prev 1 of 5 !!! Next >