The accountant at EZ Toys, Inc. is analyzing the production and cost data for its Trucks Division.
For October, the actual results and the master budget data are presented below.
|
Actual results |
Budget data |
||
|
10,000 trucks produced and sold |
12,000 trucks planned |
||
|
Unit selling price |
$15 |
Unit selling price |
$14 |
|
Variable costs: |
Unit variable cost: |
||
|
Direct materials |
$52,800 |
Direct materials |
$5 |
|
Direct labor |
51,000 |
Direct labor |
4 |
|
Variable overhead |
23,000 |
Variable overhead |
2 |
|
Total variable costs |
$126,800 |
Total unit variable costs |
$11 |
|
Fixed overhead |
$9,000 |
Fixed overhead |
$9,600 |
Required:
Prepare a variance analysis to compare actual results and master budget.