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

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:

Required:

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:

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

b$.$ 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.

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

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