Flexible budgeting and variance analysis Terrace Hill Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Quantity Dark ChocolateLight Chocolate Standard Price Cocoa3 lbs.2 lbs $8.00 Sugar 2 lbs. 4 lbs. $4.00 Standard labor time0.2 hr.0.25 hr. Planned production2,550 units3,600 units Standard labor rate$12.00 per hour $12.00 per hour Terrace Hill does not expect there to be any beginning or ending inventories of cocoa or sugar At the end of the budget year, Terrace Hill had the following actual results: Dark Chocolate Light Chocolate Actual production3,5003,200 Actual PriceActual Quantity Purchased and Used Cocoa$10.0017,200 Actual PriceActual Quantity Purchased and Used Cocoa$10.0017,200 Sugar 6.0018,500 Actual Labor RateActual Labor Hours Used Dark chocolate$10.00750 Light chocolate 10.00760 Instructions Prepare the following variance analyses, based on the actual results and production levels at the end of the budget year a. Direct materials price, quantity, and total variance. b. Direct labor rate, time, and total variance