1. PR.23.02A.ALGO Flexible Budgeting and Variance Analysis Progress: 1/1 items Assignment Score: 0.0% Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount Standard Amount per Case per Case Standard Price Dark Chocolate Light Chocolate per Pound 9 lbs. 7 lbs. 11 lbs $4.70 0.60 0.4 hr. 0.5 hr. Cocoa Sugar Standard labor time Dark Chocolate Planned production 4,800 cases Light Chocolate Standard labor rate 10,900 cases $13.00 per hr. Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) Actual Price per Pound Cocoa Sugar $4.80 0.55 4,600 11,300 Actual Quantity Purchased and Used 109,700 152,600 Actual Labor Rate Actual Labor Hours Used Dark chocolate $12.70 per hr. 1,670 Light chocolate 13.30 per hr. 5,790 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: 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. Direct materials price variance Direct materials quantity variance Total direct materials cost variance Direct labor rate variance Direct labor time variance Total direct labor cost variance 2. The variance analyses should be based on the amounts at volumes. The budget must flex with the volume changes. If the volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the production. In this way, spending from volume changes can be separated from efficiency and price variances. Check My Work Save and Exit Submit Assignment for Grading