Flexible Budgeting and Variance Analysis Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar Thie fallowing planning information has been made available: 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: Enter a favorable vanance as a negative number using a minus sign and an unfavorable variance as a positive number. 2. The voriance analyses should be based on the amounts at volumes, The budget must fiex 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: Feedbach Theak Mr Won Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit) Review how actual production is analyzed by using standard amounts. 1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production leveis at the end of the budget vear: a. Direct materials price variance, direct materiais quantity variance, and total variance. b. Direct fabor rate varlance; direct labor time variance, and total variance. Enter a favorable variance as a negative number using a minus sign and an unfovorable variance as a positive number