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 the master budget.

Problem 2 Continued from Problem 1

Required:

Prepare a profit variance analysis.

Problem 3 Continued from Problem 1

Information about the use of direct materials at EZ Toys Trucks Division for October follows:

Standard costs:
2 units per truck @ $2.50 per unit	=	$5 per truck
Trucks produced in October	=	10,000
Actual materials purchased and used:
22,000 units @ $2.40 per unit	=	$52,800

There was no beginning inventory on October 1.

Required:

Prepare the Truck Divisions direct materials variances for October.

Problem 4 Continued from Problem 1

Information about the use of direct labor at EZ Toys Trucks Division for October follows:

Standard costs:
0.4 hour per truck @ $10 per hour	=	$4 per truck
Trucks produced in October	=	10,000
Actual direct labor costs:
Actual hours worked	=	5,000
Total actual labor cost	=	$51,000
Average cost per hour	=	$10.20

Required:

Prepare the Truck Divisions direct labor variances for October.