The Donovan Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Donovan's purchased and used 96,000 pounds of potatoes at a price of $0.75 per pound. During the week, 1,700 direct labor hours were incurred in the plant at a rate of $12.15 per hour. The standard price per pound of potatoes is $0.95, and the standard direct labor rate is $11.90 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 92,000 pounds of potatoes and 1,500 hours of direct labor. 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. Actual hours Actual rate - Standard rate ') = DL rate variance = $ xls Now determine the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. Standard rate Actual hours - Standard hours allowed ) = DL efficiency variance U