Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount Standard Amount Cocoa Sugar Standard labor time per Case Dark Chocolate per Case Light Chocolate Standard Price per Pound 9 lbs. 6 lbs. $5.20 7 lbs. 11 lbs. 0.60 0.4 hr. 0.5 hr. Planned production Standard labor rate Dark Chocolate 5,800 cases $15.00 per hr. Light Chocolate 13,900 cases $15.00 per hr. Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) Actual Price per Pound Cocoa $5.30 Sugar 0.55 5,500 14,500 Actual Quantity Purchased and Used 137,200 193,100 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.70 per hr. Light chocolate 15.30 per hr. 2,000 7,430 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 000 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.