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 12 lbs. 9 lbs. $4.80 Sugar 10 lbs. 14 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Planned production Standard labor rate Dark Chocolate Light Chocolate 3,900 cases $16.00 per hr. 10,700 cases $16.00 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 Actual production (cases) Light Chocolate 3,700 11,100 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $4.90 145,000 Sugar 0.55 187,600 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.70 per hr. 1,350 Light chocolate 16.30 per hr. 5,690