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The Acorn Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Acom's purchased and used 99,000 pounds of potatoes at a price of $0.85 per pound. During the week, 1,900 direct labor hours were incurred in the plant at a rate of $12.50 per hour. The standard price per pound of potatoes is $1.05, and the standard direct labor rate is $12.35 per hour. Standards indicate that fer the number of bags of frozen fries produced, the factory should have used 96,000 pounds of potatoes and 1,600 hours of direct labor. Read the requirements. price variance. However, because the potatoes were lower grade, some of the potatoes were bad, and could not be used in production. As a result, the manufacturing facility had to use more potatoes than standards allow. This accounts for the efficiency variance. Requirement 3. Determine the direct labor rate and efficiency variances. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollar. Label the variances as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor.) Begin wth the the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. Requirements 1. Determine the direct material price and quantity variances. Be sure to label each variance as favorable or unfavorable. 2. Think of a plausible explanation for the variances found in Requirement 1. 3. Determine the direct labor rate and efficiency variances. Be sure to label each variance as favorable or unfavorable. 4. Could the explanation for the labor variances be tied to the material variances? Explain