I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Cocoa Standard Amount per Case Dark Chocolate Light Chocolate 12 lbs. 9 lbs. 10 lbs. 14 lbs. 0.3 hr. 0.4 hr. Standard Price per Pound $4.20 0.60 Sugar Standard labor time Dark Chocolate Light Chocolate Planned production 5,600 cases 12,200 cases Standard labor rate $14.50 per hr. $14.50 per hr. I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 5,300 12,700 Actual Price per Pound Actual Pounds Purchased and Used $4.30 178,800 Sugar 0.55 225,000 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.10 per hr 1,450 Light chocolate 14.90 per hr. 5,210 Required: Cocoa 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. Direct materials price variance Unfavorable Direct materials quantity variance Favorable Total direct materials cost variance Unfavorable a. du til $ b. Direct labor rate variance Unfavorable Direct labor time variance Favorable Total direct labor cost variance Unfavorable 2. The variance analyses should be based on the amounts at volumes. The budget must flex 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