This exercise is worth 5 points. J Company usually produces 70,000 units each month and uses a standard costing system. Last month it produced 68,000 units. The standard material per unit was 3 pounds. The materials purchased and used last month was 202,000 pounds. The standard price for material is $0.60 per pound. The actual price for material was $0.57 per pound. REQUIRED: (a) compute the two material variances, and (b) label them by name, and (c) indicate whether each is favorable or unfavorable