Flexible Budgeting and Vanance 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 12 lbs. 9 lbs. $4.60 Sugar 10 lbs. 14 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Planned production Dark Chocolate Light Chocolate 3,800 cases 11,300 cases $14.50 per hr. Standard labor rate $14.50 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 year, I Love My Chocolate Company had the following actual results: Light Chocolate 11,800 Actual Pounds Purchased and Used Dark Chocolate Actual production (cases) 3,600 Actual Price per Pound Cocoa Sugar $4.70 150,100 0.55 196,200, Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.00 per h 1,310 Check My Work 3 more Check My Work uses remaining Previous Sugar $4.70 0.55 Actual Labor Rate 150,100 196,200 Actual Labor Hours Used Dark chocolate $14.00 per hr. 1,310 Light chocolate 15.00 per hr. 6,050 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 vanance, direct materials quantity variance, and total variance. b. Direct labor rate variance, direct labor e 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 Direct materials quantity variance Total direct materials cost variance b. Direct labor rate variance Direct labor time variance Total direct labor cost vanance Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable amounts at actual volumes. The budget must flex with the volume changes. If the 2. The variance analyses should be based on the standard actual volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct Check My Work 3 more Check My Work uses remaining Next