lexible Budgeting and Variance Analysis Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following blanning information has been made available: 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: 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positiv number. a. Direct materials price variance, direct materials quantity variance, and total variance. b. Direct labor rate variance, direct labor time variance, and total variance. 1. Prepare the followino variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget vear. Enten 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, and total variance. b. Direct labor rate variance, direct labor time variance, and total variance. 2. The variance analyses should be based on the 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. resethack F Check My Morik Unfavorable variances can be thought of as increasing costs (a debi), Favorable vanainces can be thought of as decreasing costs (a creat) Review how actual production is analyzed by using standard amounts