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exible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require coco and so. The following planning

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exible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require coco and so. The following planning formation to be made available Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocon 12 lbs $5.10 Sugar 10 lbs 14 bis 0.00 Standard labor time 0.4 h 0.5h Dark Chocolate Light Chocolate Planned production 5,100 Cases 13,800 cases Standard labor rate $16.00 per hr $16.00 per hr I Love My Chocolate Company does not expect there to be any beginning or ending inventones of cocoa or sugar At the end of the budget. I Love My Chocolate Company had the following actual results: Dark Chocolate tight Chocolate Actual production (cases) 4,800 14,400 Actual Price per Pound Actual Pounds Purchased and Used $5.20 188,100 Cocoa 243,400 0.55 Sugar mahor Hours Used Actual Labor Hours Used Dark chocolate Light chocolate Required Actual Labor Rate $15.50 perhe 16:50 per 1.750 2,300 1. Prepare the following variance analyses for both chocolates and the total, based on the actuales and production levels at the end of the budget en a. Direct materials price variance direct materials uity variance, and totale b. Direct loborrate variance, direct Inbor time variance, and total variance Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive amber . Direct materials price variance Unfavorable Direct materials quantity variance Antvorable Total direct materials cost variance Antavorable b. Direct labor rate vanance Unfavorable Unfavorable - Direct labor time variance Unfavorable Total direct labor cost variance 2. The variance analyses should be based on the standard - amounts at actual volumes. The budget must flex with the volume change the tal volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should be the change in direct materials and rect labor that will be required for the actual production. In this way, spending from volume changes can be separated from ency and cances

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