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 $(3$ pounds @ $$3$ per pound$)$$ $9$per unitActual direct materials used $($AQ$)270,000$poundsActual units produced$71,000$unitsActual cost of direct materials used$ $742,500$

AQ $=$ Actual Quantity

SQ $=$ Standard Quantity

AP $=$ Actual Price

SP $=$ Standard Price

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