The Garver Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Lastweek, Garver's purchased and used 102,000 pounds of potatoes at a price of $0.80 per pound. During theweek, 2,400 direct labor hours were incurred in the plant at a rate of $12.50 per hour. The standard price per pound of potatoes is $0.90, and the standard direct labor rate is $12.25 per hour. Standards indicate that for the number of bags of frozen friesproduced, the factory should have used 99,000 pounds of potatoes and 2,300 hours of direct labor.

Requirement 1. Determine the direct material price and quantity variances. Be sure to label each variance as favorable or unfavorable. (Enter the variance as a positive number. Round your answers to the nearest whole dollar. Label the variances as favorable(F) or unfavorable(U).)

The direct materials price variance is

The direct materials quantity variance is

Requirement 2. Think of a plausible explanation for the variances found in Requirement 1.

One plausible explanation is that Garver bought (higher lower grade potatoes at higher/ lower grade potatoes at a cheaper) price, which resulted in the (favorable/unfavorable) price variance. However, because the potatoes were (higher grade, some of the potatoes were larger than normal/ lower grade, some of the potatoes were bad, and could not be used in production) As aresult, the manufacturing facility (had to use more/ was able to use fewer) potatoes than standards allow. This accounts for the (favorable/unfavorable) efficiency variance.

Requirement 3. Determine the direct labor rate and efficiency variances. Be sure to label each variance as favorable or unfavorable. (Enter the variance as a positive number. Round your answers to the nearest whole dollar. Label the variances as favorable(F) or unfavorable(U).)

The direct labor rate variance is ?

The direct labor efficiency variance is ?