Information about the use of direct materials at EZ Toys’ Trucks Division for October follows:
|
Standard costs |
|
|
2 units per truck @ $2.5 per unit |
= $5 per truck |
|
Trucks produced in October |
= 10,000 |
|
Actual materials purchased and used |
|
|
22,000 units @ $2.4 per unit |
= $52,800 |
There was no beginning inventory on October 1.
Required:
Prepare Truck Division’s direct materials variances for October.