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 @ $$2$ per pound$)$

Actual direct materials used $($AQ$)$

Actual units produced

Actual cost of direct materials used$280,000$ pounds

$72,000$ units

$ $476,000$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.