Belgian Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

Belgian Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Belgian Chocolate had the following actual results:

1. Prepare the following variance analyses for both chocolates and total, based on the actual results and production levels at the end of the budget year:

a. Direct materials price, quantity, and total variance.
b. Direct labor rate, time, and total variance.

2.  Why are the standard amounts in part (1) based on the actual production for the year instead of the planned production for the year?

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Standard Amount per Case Light Chocolate Standard Price per Pound $4.50 0.65 Dark Chocolate 10 Ibs. 8 Ibs. 0.35 hr. Cocoa Sugar Standard labor time 7 Ibs. 12 Ibs. 0.40 hr. Dark Chocolate 4,200 cases $14.50 per hr. Light Chocolate 10,500 cases $14.50 per hr. Planned production Standard labor rate Light Chocolate 11,000 Dark Chocolate 4,000 Actual Price per Pound Actual Pounds Purchased and Used $4.60 Actual production (cases) Cocoa Sugar 0.60 Actual Labor Rate $1.90 per hr. 14.90 per hr. 117,500 160,000 Actual Labor Hours Used 1,270 4,500 Dark chocolate Light chocolate