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 Standard Price per Light Chocolate Chocolate Pound Cocoa 10 lb. 7 lb. $4.3 Sugar 8 lb. 12 lb. 0.6 Standard labor 0.3 hr. 0.4 hr. time Dark Chocolate Light Chocolate Planned production 4,800 cases 13,400 cases Standard labor rate $13.5 per hr. $13.5 per hr. I Love My Chocolate 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) 4,600 13,900 Actual Pounds Purchased and Actual Price per Pound Used Pound Used Cocoa $4.4 144,000 Sugar 0.55 198,500 Actual Labor Rate Actual Labor Hours Used Dark chocolate $13.1 per hr. 1,260 Light chocolate 13.9 per hr. 5,700 Required: Prepare the following variance analyses for both chocolates and 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. 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