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.		$4.40
Sugar	9 lbs.		13 lbs.		0.60
Standard labor time	0.4 hr.		0.5 hr.

	Dark Chocolate		Light Chocolate
Planned production	4,300 cases		11,100 cases
Standard labor rate	$15.50 per hr.		$15.50 per hr.

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 (cases)	4,100		11,500
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$4.50		137,800
Sugar	0.55		181,700
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$15.10 per hr.		1,490
Light chocolate	15.90 per hr.		5,890

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	FILL IN THE BLANK
	Direct materials quantity variance	FILL IN THE BLANK
	Total direct materials cost variance	FILL IN THE BLANK
b.	Direct labor rate variance	FILL IN THE BLANK
	Direct labor time variance	FILL IN THE BLANK
	Total direct labor cost variance	FILL IN THE BLANK