The Windam Restaurant Group manutactures the bags of frozen French fries used at its franchised restaurants. Last week, Windam purchased and used 98,000 pounds of potatoes at a price of $0.85 per pound. During the week, 2,100 drect labor hours were incurred in the plant at a rase of $1245 per hour. The standard price per pound of potatoes is $1,00, and the standard drect labor rate is $12.15 per hour. Standards indicate that for the number of bags of frozen fres produced, the factory should have used 95,000 pounds of potatons and 2,000 hours of direct labor. Read the reguicenents- Requirement 1. Determine the direct matenal price and quantity variances. Be sure to label each varance as favorable or untavorable. (Enter the variances as positive numbers. Enter currency amounts to the nearest cent and your answers to the nearest whole dollat Label the vaviances as favarable (F) or untavorable (U). Abbreviations used. DM = Drect materials) Begin by determining the formula for the price variance, then compuse the peice variance for drect materials. Determine the formula for the quantity vanance, then cempute the quantry variance for diect materials. Requirement 2. Think of a plaus ble explanation for the variances found in Requirement 1. One plausible explanation is that Windam bought peice, which resulted in the price variance. However, because the potatoes were lower grade, some of the potaloes were bad, and could not be used in production. As a resuit, the manufacturng faclity potatces than standards allow. This accounts for the efficiency variance. Requirement 3. Dotermine the direct labor rate and efficiency variances. (Enter the vanances as positwe numbers. Entor currency anounts to the nearest cent and your answers to the nearest. whole dolar. Label the vanances as favorable (F) or untavorable (U). Abbreviations vsed: DL = Direct labor.) Begin wh the the direct labor rate vaniance. Firs determine the formula for the rate variance, then compuse 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