direct labor rate is $11.75 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 94,000 pounds of potatoes and 1,500 hours of direct labor Beqin by determining the formula for the price variance, then compute the price variance for direct materials. Determine the formula for the quantity variance, then compute the quantity variance for direct materials. Requirement 2. Think of a plausible explanation for the variances found in Requirement 1. One plausible explanation is that Jone bought price, which resulted in the price variance. However, because the potatoes were As a result, the manufacturing facility potatoes than standards allow. This accoun for the efficiency variance. Begin wth the the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. Now determine the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. Requirement 4. Could the explanation for the labor variances be tied to the material variances? Explain. |labor rate and efficiency variances be tied to the material variances. For example, if the material variances were the result of purchasing ], then the factory would use [ Iabor in sorting the potatoes. As a result, they would have had to pay workers