Flexible Budgeting and Variance Analysis Belgian 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 Light Standard Price per Chocolate 12 lbs. 10 lbs. 0.4 hr Pound Cocoa Sugar Standard labor time Chocolate 9 lbs. 14 lbs 0.5 hr 4.3 0.6 Planned production Standard labor rate Belgian Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Belgian Chocolate had the following actual results: Dark Chocolate 4,300 cases $16 per hr Light Chocolate 11,000 cases $16 per hr Dark Chocolate Light Chocolate Actual production 4,100 11,400 Actual Price per Actual Pounds Purchased Pound and Used Cocoa 152,600 Sugar 0.55 195,600 Actual Labor Rate $15.6 per hr. 16.4 per hr. Actual Labor Hours Used Dark chocolate Light chocolate Required: Prepare the following variance analyses for both chocolates and total, based on the actual results and p a. Direct materials price variance, direct materials quantity variance, and total variance. 1,490 5,840 n levels at the end of the budget year: 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. If there is no variance, enter a zero. 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 variance 2. The variance analyses should be based on the from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the production. In this way, spending from volume changes can be separated from efficiency and price variances. amounts at volumes. The budget must flex with the volume changes. If the ? volume is different