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 Sugar 10 lbs. 7 lbs. $5.10 8 lbs. 12 lbs. 0.60 Standard labor time 0.3 hr. 0.4 hr. Planned production Dark Chocolate Light Chocolate 3,900 cases $14.00 per hr. 11,100 cases $14.00 per hr. 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: Light Chocolate Dark Chocolate Actual production (cases) 3,700 11,500 Cocoa Sugar Actual Price per Pound $5.20 Actual Pounds Purchased and Used 118,100 0.55 163,400 Actual Labor Rate Actual Labor Hours Used Dark chocolate $13.50 per hr. 1,010 Light chocolate 14.50 per hr. 4,720