The Homer Restauram Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Homer's purchased and used 95,000 pounds of potatoes at a price of 50.70 per pound. During the week, 1,600 direct labor hours were incurred in the plent at e rate of $12.15 per hour. The standard price per pound of potatoes is $0.80. and the standard direct labo: ato is $11.90 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 93,000 pounds of potatoes and 1,300 hours of direct labor. Read the requirements: Requirement 1. Determine the direct material price and quantity variances. Be sure to label each variance as favorable or unfovorable (Enter the variances as positive numbers. Enler currency amounts to the noarest cont and your answers to the nearest wholo dollat. Label the variances as favorable (F) or unfavorable (U). Abtrovalfons used: DM = Direct materials.) Begin by determining the formula for the price variance, then compute the price variance for direct materials. The Homer Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Homer's purchased and used 95,000 pounds of potas $0.70 per pound. During the week, 1,600 direct labor hours wore incurrod in the plant at a fate of $12.15 per hour. The standard price per pound of potatoes is $0.80, and the st rate is $11,90 per hour. Standards indicate that for the number of bags of frozen fries produced, the factory should have used 93,000 pounds of potatoes and 1,300 hours of dire Read the requirements. Requirement 1. Determ amounts to the nearest Begin by determining th Requirements 1. Defermine 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 rale and efficiency variances. Be sure to labal each variance as favorable or unfavorable. 4. Could the explanation for the labor variances be tied to the material variances? Explain. horable. (Enter the variancess as positwe numbers b). Abbroviations usod: DM= Direct materials.)