Direct materials (15 lbs. @ $5 per lb.) Direct labor (4 hrs. @ $15 per hr.) $75 60 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (123,500 lbs. @ $4.80 per lb.) Direct labor (37,000 hrs. @ $15.10 per hr.). $592,800 558,700 AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Actual Cost AQ IX 123,500 X AQ SP AP $ 4.80 SQ Standard Cost | X SP X $ 5.00 123,500 X $ 5.00 592,800 617,500 $ 24,700 O Direct materials price variance Direct materials quantity variance $ 24,700 Favorable 0 Unfavorable Total direct materials variance 635,000 Favorable