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.		$4.3
Sugar	10 lb.		14 lb.		0.6
Standard labor time	0.4 hr.		0.5 hr.

	Dark Chocolate		Light Chocolate
Planned production	5,300 cases		10,100 cases
Standard labor rate	$13.5 per hr.		$13.5 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)	5,000		10,500
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$4.4		155,300
Sugar	0.55		192,100
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$13.1 per hr.		1,820
Light chocolate	13.9 per hr.		5,380

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:

1. Direct materials price variance, direct materials quantity variance, and total variance.
2. 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.

a.	Direct materials price variance	$fill in the blank 1
	Direct materials quantity variance	$fill in the blank 3
	Total direct materials cost variance	$fill in the blank 5
b.	Direct labor rate variance	$fill in the blank 7
	Direct labor time variance	$fill in the blank 9
	Total direct labor cost variance	$fill in the blank 11