Flexible Budgeting and Variance AnalysisSharon'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 Amountper Caseper CaseDark Chocolate Light ChocolateCocoaSugarStandard labor time$9$ Ibs$\mathrm{.}7$ Ibs$\mathrm{.}0\mathrm{.}4$ hr$\mathrm{.}6$ Ibs$\mathrm{.}11$ Ibs$\mathrm{.}0\mathrm{.}5$ hr$.$Standard Price per Pound$$5\mathrm{.}300\mathrm{.}60$Dark ChocolatePlanned productionLight Chocolate$11,000$ casesStandard labor rate$3,700$ cases$$13\mathrm{.}00$ per hr$.$$$13\mathrm{.}00$ per hr$.$Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results:Dark ChocolateLight ChocolateActual production $($cases$)3,50011,400$Actual Price per PoundActual Quantity Purchased and UsedCocoa$$5\mathrm{.}40100,400$Sugar$0\mathrm{.}55146,200$Actual Labor RateActual Labor Hours UsedDark chocolateLight chocolateRequired:$$12\mathrm{.}60$ per hr$\mathrm{.}1,27013\mathrm{.}40$ per hr$\mathrm{.}5,8401.$ 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 varianceDirect materials quantity varianceTotal direct materials cost varianceb.Direct labor rate varianceDirect labor time varianceTotal direct labor cost variance$2.$ The variance analyses should be based on the$=$ amounts at$.$performance evaluation should reflect the change in direct materials and direct labor that wil be required for the $-$ volumes. The budpet must flex with the volume changes. if the L$-$ volume is different from the planned volume, as it was in this case, then the budpet used for$-$ production. In this way, spending from volume changes can be separated from efficiency and price variances.