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 lb.		9 lb.		$5.1
Sugar	10 lb.		14 lb.		0.6
Standard labor time	0.4 hr.		0.5 hr.

	Dark Chocolate		Light Chocolate
Planned production	4,900 cases		11,300 cases
Standard labor rate	$16 per hr.		$16 per hr.

I Love My Chocolate 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)	4,700		11,800
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$5.2		163,400
Sugar	0.55		206,900
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$15.7 per hr.		1,710
Light chocolate	16.3 per hr.		6,050

Required:

Prepare the following variance analyses for both chocolates and total, based on the actual results and production levels at the end of the budget year:

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.

a.	Direct materials price variance		Unfavorable
	Direct materials quantity variance		Unfavorable
	Total direct materials cost variance		Unfavorable
b.	Direct labor rate variance		Unfavorable
	Direct labor time variance		Favorable
	Total direct labor cost variance		Unfavorable