I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

Instructions
1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:
a. Direct materials price, quantity, and total variance.
b. Direct labor rate, time, and total variance.
2. Why are the standard amounts in part (1) based on the actual production for the year instead of the planned production for theyear?

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Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa ugar Standard labor time 12 lbs. 10lbs 0.50 hr 8 lbs 14lbs 060 hr. $7.25 1.40 Planned production Standard labor rate Dark Chocolate 4,700 cases $15.50 per hr. Light Chocolate 11,000 cases $15.50 perhr Dark Chocolate 5,000 Actual Price per Pound $733 135 Actual Labor Rate Light Chocolate 10,000 Actual Pounds Purchased and Used 140,300 188,000 Actual Labor Hours Used Actual production (cases) Cocoa Sugar 2360_ Dark chocolate Light chocolate $15.25 perh. 15.80 perhr 6,120