Flexible Budgeting and Variance AnalysisSharons Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:Line Item DescriptionStandard Amount per CaseDark ChocolateStandard Amount per CaseLight Chocolate$$Standard Price per PoundCocoa$9$ lbs$\mathrm{.}6$ lbs$.$$$5\mathrm{.}30$Sugar$7$ lbs$\mathrm{.}11$ lbs$\mathrm{.}0\mathrm{.}60$Standard labor time$0\mathrm{.}4$ hr$\mathrm{.}0\mathrm{.}5$ hr$.$Line Item DescriptionDark ChocolateLight ChocolatePlanned production$3,700$ cases$11,000$ casesStandard labor rate$$13\mathrm{.}00$ per hr$.$$$13\mathrm{.}00$ per hr$.$Sharons 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, Sharons Delights Chocolate Company had the following actual results:Line Item DescriptionDark ChocolateLight ChocolateActual production $($cases$)3,50011,400$Line Item DescriptionActual Price per Pound$$Actual Quantity Purchased and UsedCocoa$$5\mathrm{.}40100,400$Sugar$0\mathrm{.}55146,200$Line Item DescriptionActual Labor Rate$$Actual Labor Hours UsedDark chocolate$$12\mathrm{.}60$ per hr$\mathrm{.}1,270$Light chocolate$13\mathrm{.}40$ per hr$\mathrm{.}5,840$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$.$Line Item DescriptionAmountvarianceDirect materials price variance$fill in the blank $1$FavorableUnfavorableDirect materials quantity variance$fill in the blank $3$FavorableUnfavorableTotal direct materials cost variance$fill in the blank $5$FavorableUnfavorableb.Line Item DescriptionAmountvarianceDirect labor rate variance$fill in the blank $7$FavorableUnfavorableDirect labor time variance$fill in the blank $9$FavorableUnfavorableTotal direct labor cost variance$fill in the blank $11$FavorableUnfavorable$2.$ The variance analyses should be based on thefill in the blank $1$ of $4$actualstandardamounts atfill in the blank $2$ of $4$actualstandardvolumes. The budget must flex with the volume changes. If thefill in the blank $3$ of $4$actualstandardvolume 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 thefill in the blank $4$ of $4$actualstandardproduction. In this way, spending from volume changes can be separated from efficiency and price variances.