QS $21-8($Algo$)$ Direct materials price and quantity variances LO P$3$

A company reports the following for one of its products.

Direct materials standard $(4$ pounds @ $$3$ per pound$)$

Actual direct materials used $($AQ$)$

Actual units produced

Actual cost of direct materials used

$AQ=$ Actual Quantity

SQ $=$ Standard Quantity

AP $=$ Actual Price

SP $=$ Standard Price

$$\mathrm{.}12$ per unit

$310,000$ pounds

$62,000$ units

$$852,500$

$$12$ per unit

$310,000$ pounds

$62,000$ units

$$852,500$

Compute the direct materials price and quantity variances and identify each as favorable or unfavorable.