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Evan Restaurant manufactures bag S French frkS used at its franchised restaurants. Last Evan'S and 103.000 of at a price of ".80 per During the 2.211' d *ect labor incurred the at a rate Of "am Letter of iS SO 95. and Standard dlrect rate iS S12_35 per hour. indicate that fM the of bags of fries factory have used 1 OJ.OOO of potatoes and 2.000 of labor 1. Determine the direct material *ice and quantnyvariances. sure to each or unfavorable. (Enter the varianc.s as poSdi M' rr&rS_ E ntg Currency to nearest and to the rwareSt douan the varianc.s as favorable (F) (l J). Begin by deterrnhlng formula the price variance, then the price for dieCt materials. the the quantlty vanance. then COrTlWte quantity variance diret rnatgia&. 2. Think Of a explanatW1 for the variances found Requirement 1. One plauble iS that b.Nght (9) price , which resulted (10) 0M untity vari*1Ce price Vari*1Ce_ However, because *Statoe.S were (11 ) _ AS result, the marufacturiryg facilty (12) than Standards allow. This for (13) 3. Determme the direct labor rate and (Enter the variances as gitiw Enter Curremy the to the nearest whole Label the variances as ugd: D L = Begin wth the the labor rate variance. First detgmne the rate variance, then compute the rate Variance for direct D L rate v NOW determine direct labor effciency variance First determirw the the efficiency variance, then compute the efficiency variance for dieCt * ( - ) = DC efficiency variance 4. Could variances be tied to the material variances? Explain The (22) I: Requirements Labor rate and Vari*1CGS (23) be to material variances. For if material variances result Of (24) th the factory use (25) in the AS a result. they have had to pay 2. 3. 4. the direct matenal pnCe wantity Be Sure to label each ag or Thlnk of a *uSible explanation for the found in Requirement 1. the direct rate and effeerEy Be Sure to each Could for labor be tied to material Explan O Actual hours O Actual price O ctual quantity purchased O Standard hours allowed O price O Standard quantity allowed O Standard hours allowed O Standard price O Standard quantity allowed (4) O Actual hours O Actual price O Actual quantity purchased O Actual hOLS O Actual price O Actual quantity PLChased O Standard hours allowed O Standard price O Standard quantity allowed O (11) O Actual hours O Actual price O Actual quantity used O Standard allowed O Standard price O Standard quaMity allowed (10) favorable O Actual hours O Actual price O Actual quantity used (12) had to O Standard hours allowed O Standard price O Standard quantity allowed O Actual hours O Actual price O Standard allowed O Standard price O Standard quantity allowed (8) (15) o (9) higher BWCr grade potatoes at a higher o (13) C) favorable (14) O Actual quantity used O Standard hours allowed O Standard hours allowed (16) O Ngt*r grade. of the wge largg than norma vade, Some of bad. and not be used production O Standard hours allowed