Exercise 1 Pharell Company's standards for direct material for Product B includes three pounds of direct materials at $5.00 per pound. During June, 29,000 pounds of direct materials are purchased at a cost of $4.70 per pound and 28,000 pounds of direct materials are used to produce 9,400 finished units of Product B. Instructions (a) Compute the direct material price and quantity variances. (6) Repeat (a), assuming the actual purchase price is $5.15 per pound, the actual quantity purchased is 29,000 pounds and the actual quantity used is 28.800 pounds. Variance Computations: (a) Direct Materials: AQ AP X AQ SP AQ SP SQ SP 0 Amount of Variance Name of Variance Unf or Fav? Direct Materials: AQ AP AQ X SP AQ X SP SQ SP Amount of Variance Name of Variance Unf or Fav