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: 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 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. 2. The variance analyses should be based on the amounts at volumes. The budget must flex with the volume changes. If th performance evaluation should reflect the change in direct materials and direct labor that will be required for the production. In this way, spendir Feedbsck Theck My Wark Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Review how actual production is analyzed by using standard amounts. Learning Objective 1 , Learning Objective 2 , and Learning Objective 3