Flexible Budgeting and Variance Analysis 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 Cocoa Sugar Standard labor time per Case Dark Chocolate per Case Light Chocolate Standard Price per Pound 9 lbs. 6 lbs. $4.30 7 lbs. 11 lbs. 0.60 0.4 hr. 0.5 hr. Planned production Standard labor rate Dark Chocolate 3,700 cases $14.50 per hr. Light Chocolate 12,400 cases $14.50 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) 3,500 12,900 Actual Price per Pound Actual Quantity Purchased and Used Cocoa Sugar $4.40 0.55 109,400 162,200 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.10 per hr. 1,270 Light chocolate 14.90 per hr. 6,610 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. a. Direct materials price variance 2,830 Unfavorable Direct materials quantity variance -7,250 x Favorable Total direct materials cost variance -4,420 x Unfavorable b. Direct labor rate variance 2,136 v Unfavorable Direct labor time variance Total direct labor cost variance 432 X 2,568 X Unfavorable Unfavorable