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Flexible Budgeting and Variance Analysis 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: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 11 lbs. 8 lbs. $5.00 Sugar 9 lbs. 13 lbs. 0.60 Standard labor time 0.3 hr. 0.4 hr. Dark Chocolate Light Chocolate Planned production 4,400 cases 12,200 cases Standard labor rate $14.50 per hr. $14.50 per hr. 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: Dark Chocolate Light Chocolate Actual production (cases) 4,200 12,700 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.10 148,500 Sugar 0.55 197,800 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.20 per hr. 1,150 Dark Chocolate Light Chocolate Actual production (cases) 4,200 12,700 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.10 148,500 Sugar 0.55 197,800 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.20 per hr. 1,150 Light chocolate 14.80 per hr. 5,210 Required: 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 variance, direct materials quantity variance, and total variance. b. Direct labor rate variance, direct labor time variance, and total variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance Unfavorable Direct materials quantity variance $ Unfavorable Total direct materials cost variance $ Unfavorable b. Direct labor rate variance Unfavorable b. Direct labor rate variance, direct labor time variance, and total variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials price variance Unfavorable Direct materials quantity variance Unfavorable a. Total direct materials cost variance Unfavorable b. Direct labor rate variance Unfavorable Direct labor time variance Unfavorable Total direct labor cost variance Unfavorable