TenPro reports the following on one of its products. Compute the direct materials price and quantity variances.
Direct materials standard (4 lbs. @ $2/lb.) . . . . . . . . $8 per finished unit
Actual direct materials used . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 lbs.
Actual finished units produced . . . . . . . . . . . . . . . . . . . . . . 30,000 units
Actual cost of direct materials used . . . . . . . . . . . . . . . . . . . . . $267,500