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. $5.40 Sugar 9 lbs. 13 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 5,200 cases 13,300 cases Standard labor rate $14.00 per hr. $14.00 per hr. Love My Chocolate Company had the 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, following actual results: Dark Chocolate Light Chocolate Actual production (cases) 4,900 13,800 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.50 165,100 Sugar 0.55 217,900 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.50 165,100 Sugar 0.55 217,900 Actual Labor Rate Actual Labor Hours Used Dark chocolate $13.60 per hr. 1,780 Light chocolate 14.40 per hr 7,070 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 Direct labor time variance Favorable Total direct labor cost variance $ Favorable