I LOVE MY CHOCOLATE COMPANY MAKES DARK CHOCOLATE AND LIGHT CHOCOLATE. BOTH PRODUCTS REQUIRE COCOA AND SUGAR. THE FOLLOWING INOFORMATION HAS BEEN MADE AVAILABLE:

STANDARD AMOUNT PER CASE:

DARK CHOCOLATE LIGHT CHOCOLATE STANDARD PRICE PER POUND

COCOA: 12LBS 8LBS 7.25

SUGAR: 10LBS 14LBS 1.40

STAND.LABOR TIME: .50 HR .60HR

PLANNED PRODUCTION: 4700 CASES 11000 CASES

STAND. LABOR RATE: $15.50 PER HR $15.50 PER HR

I LOVE MY CHOCOLATE COMPANY DOES NOT EXPECT THERE TO BE ANY BEGINIING OR ENDING INVENTORIES OF COCOA OR SUGAR. AT THE END OF THE YEAR BUDGET YEAR, I LOVE MY CHOCOLATE COMPANY HAD THE FOLLOWING ACTUAL RESULTS:

DARK CHOCOLATE LIGHT CHOCOLATE

ACTUAL PRODUCTION (CASES): 5000 10000

ACTUAL PRICE PER LBS ACTUAL LBS PURCHASED AND USED

COCOA $ 7.33 140300

SUGAR $1.35 188000

ACTUAL LABOR RATE ACTUAL LABOR HOURS USED

DARK CHOCOLATE $15.25 2360

LIGHT CHOCOLATE $15.80 6120

PREPARE THE FOLLOWING VARIANCE ANALYSIS 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, QUANITTY, AND TOTAL VARIANCE

B. DIRECT LABOR RATE, TIME, AND TOTAL VARIANCE

2. WHY ARE THE STANDARD AMOUNTS IN PART (1) based on the acutal production for the year instead of the planned production for the year?