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 $11$ lb$.8$ lb$.$ $$4\mathrm{.}7$

Sugar $9$ lb$.13$ lb$.0\mathrm{.}6$

Standard labor time $0\mathrm{.}4$ hr$.0\mathrm{.}5$ hr$.$

Dark Chocolate Light Chocolate

Planned production $4,500$ cases $11,100$ 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$)4,30011,500$

Actual Price per Pound Actual Pounds Purchased and Used

Cocoa $$4\mathrm{.}8140,000$

Sugar $0\mathrm{.}55183,500$

Actual Labor Rate Actual Labor Hours Used

Dark chocolate $$15\mathrm{.}6$ per hr$.1,570$

Light chocolate $16\mathrm{.}4$ per hr$.5,890$

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:

Direct materials price variance, direct materials quantity variance, and total variance.

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.