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 Light Standard Price per Chocolate Pound Cocoa Sugar Standard labor time Chocolate 8 lbs 14 lbs 0.60 hr 12 lbs. $7.25 10 lbs. 1.40 0.50 hr Dark Chocolate 4,700 cases $15.50 per hr Light Chocolate 11,000 cases $15.50 per hr Planned production Standard labor rate 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, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production 5,000 10,000 cases Actual Price per Actual Pounds Purchased and Pound Used $7.33 1.35 Actual Labor Rate $15.25 per hr 15.80 per hr Cocoa 140,300 Sugar 188,000 Actual Labor Hours Used Dark chocolate Light chocolate 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number 2,360 6,120 a. Direct materials price variance, direct materials quantity variance, and total variance b. Direct labor rate variance, direct labor time variance, and total variance Direct materials price variance Direct materials quantity variance Total direct materials cost variance Unfavorable Favorable Unfavorable a. Direct labor rate variance Direct labor time variance Total direct labor cost variance Unfavorable Favorable Unfavorable b