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: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 9 lbs. 6 lbs. $4.70 Sugar 7 lbs. 11 lbs. 0.60 Standard labor time 0.3 hr. 0.4 hr. Planned production Dark Chocolate Light Chocolate 4,600 cases 12,600 cases $14.50 per hr. Standard labor rate $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) 4,400 13,100 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $4.80 118,800 Sugar 0.55 170,500 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.20 per hr. 1,200 Dark chocolate Light chocolate Required: $14.20 per hr. 14.80 per hr. 1,200 5,370 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. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. Direct labor rate variance Direct labor time variance Total direct labor cost variance 2. The variance analyses should be based on the with the volume changes. If the amounts at volumes. The budget must flex 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