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 $9$ lbs$.6$ lbs$.$ $$4\mathrm{.}50$

Sugar $7$ lbs$.11$ lbs$.\mathrm{.}60$

Standard labor time $0\mathrm{.}40$ hr$.0\mathrm{.}50$ hr$.$

Dark Chocolate Light Chocolate

Planned production $5,300$ cases $10,500$ cases

Standard labor rate $$15\mathrm{.}50$ per hr$.$ $$15\mathrm{.}50$ 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 Light Chocolate

Actual production $($cases$)5,00010,900$

Actual Price per Pound Actual Pounds Purchased and Used

Cocoa $$4\mathrm{.}60111,000$

Sugar $\mathrm{.}55151,000$

Actual Labor Rate Actual Labor Hours Used

Dark chocolate $$15\mathrm{.}20$ per hr$.1,820$

Light chocolate $15\mathrm{.}80$ per hr$.5,590$

Required:

$1.$ Prepare the following variance analyses for both chocolates and the 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.

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

Direct labor rate variance, direct labor time variance, and total variance.

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 $