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 made available: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs. 9 lbs. $4.40 Sugar 10 lbs. 14 lbs. 0.60 Standard labor time 0.3 hr. 0.4 hr. Dark Chocolate Light Chocolate Planned production 5,200 cases Standard labor rate $15.50 per hr 11,100 cases $15.50 per hr. 1 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 M Chocolate Company had the following actual results: Dark Chocolate Actual production (cases) 4,900 Actual Price per Pound Sugar $4.50 0.55 Actual Labor Rate Light Chocolate 11,500 Actual Pounds Purchased and Used 163,100 204,000 Dark chocolate Light chocolate Required: Actual Labor Rate Actual Labor Hours Used $15.10 per hr. 1,340 15.90 per hr. 4,720 1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production 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 Direct materials quantity variance $ Total direct materials cost variance b. Direct labor rate variance Direct labor time variance Total direct labor cost variance 2. The variance analyses should be based on the changes. If the amounts at volumes. The budget volume is different from the planned volume, as it was in this case, then the budget used fo should reflect the change in direct materials and direct labor that will be required for the volume changes can be separated from efficiency and price variances. production. In this Direct labor time variance Total direct labor cost variance 2. The variance analyses should be based on the changes. If the amounts at volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation volumes. The budget must flex with the volum should reflect the change in direct materials and direct labor that will be required for the volume changes can be separated from efficiency and price variances. production. In this way, spending from Check My Work