Title of the case: How will the increasing cost of chocolate impact Hersheys variances?

The price of chocolate had been predicted to increase rapidly beginning in late 2013 and continue into 2014, according to the Wall Street Journal. The price increase is due to multiple factors, including a shortage of cocoa beans and an increase in demand by consumers. Although the demand for all chocolate has been increasing, consumer tastes have been gradually shifting towards dark chocolate because of its purported health benefits. Dark chocolate uses more cocoa beans per ounce than milk chocolate. So what does the predicted price increase mean for companies that use chocolate and/or cocoa beans? Questions (seeking answers for all in details please)

1. The Hershey Company produces several products that use chocolate and/or cocoa beans. Which of the following variances for Hersheys chocolate products are likely to be impacted by the projected price increase in the cost of chocolate? Explain your answer. a. Direct material price variance b. Direct material quantity variance c. Direct labor rate variance d. Direct labor efficiency variance

2. Hersheys Special Dark Mildly Sweet Chocolate Bar and Hersheys Milk Chocolate with Almonds Bar both weigh 1.45 ounces. Which bars variances are more likely to be impacted by the increase in the cost of chocolate? Explain your reasoning.

3. Since The Hershey Companys management knows that the price of chocolate is likely to increase, it might revise one or more of its standards. Which standard(s) would be impacted? What would be the benefit of revising the standard(s) before the end of the reporting period?

NO ADDITIOANL DATE PROVIDED OR NEEDED