Q:

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.		$5.20
Sugar	7 lbs.		11 lbs.		0.60
Standard labor time	0.4 hr.		0.5 hr.

	Dark Chocolate		Light Chocolate
Planned production	5,500 cases		12,000 cases
Standard labor rate	$15.50 per hr.		$15.50 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)	5,200		12,500
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$5.30		122,400
Sugar	0.55		169,600
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$15.20 per hr.		1,890
Light chocolate	15.80 per hr.		6,410

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 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