ing and Variance Analysis 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 10 lbs. 7 lbs. 8 lbs. 12 lbs. Cocoa Standard Price per Pound $4.20 0.60 Sugar Standard labor time 0.3 hr. 0.4 hr. Dark Chocolate Light Chocolate Planned production 4,600 cases 12,400 cases Standard labor rate $13.50 per hr $13.50 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 12,900 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $4,30 135,000 0.55 Sugar 105,300 Actual Labor Rate Actual Labor Hours Used 1,200 Dark chocolate $13.00 per hr 5.290 14.00 per hr Light chocolate 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 an Direct materials price variance, direct materiais quantity variance, and total variance 0.55 Actual Labor Rate 135,000 185,300 Actual Labor Hours Used Dark chocolate $13.00 per hr. Light chocolate 1,200 14.00 per hr Required: 5,290 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 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 16,440 X Unfavorable Direct materials quantity variance 12,085 X Unfavorable Total direct materials cost variance 4,355 Unfavorable b. Direct labor rate variance 600 X Unfavorable Direct labor time variance 2,645 X Unfavorable Total direct labor cost variance 2,045 X "Unfavorable 2. The variance analyses should be based on the standard V amounts at actual volumes. The budget must flex with the volume changes. Ir actual volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the che materials and direct labor that will be required for the actual production. In this way, spending from volume changes can be separated from ethicle variances Feedback Check My Work