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 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. a. direct materials price variance $ 11,224 unfavorable direct materials quantity variance $ 2,175 favorable total direct materials cost variance $ unfavorable b. direct labor rate variance $ 1,860 unfavorable direct labor time variance $ 1,860 favorable total direct labor cost variance $ 3,696 unfavorable 2. the variance analyses should be based on the standard amounts at actual volumes. the budget must flex with the volume changes. if the actual 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 actual production. in this way, spending from volume changes can be separated from efficiency and price variances.