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 profit variance analysis.

Case Study: [1 The accountant at E2 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: 105000 Trucks Produced and Sold 12,000 Trucks Planned Unit selling price Unit selling price m Variable costs: Unit variable oost: Direct materials $ 52,801) Direct materials 3; 5 Direct labor 5 LDOD Direct labor 4 Variable overhead 2 3.000 Variable overhead 2 Total variable costs m Total unit variable costs m Fixed overhead $9300 Fixed overhead $9.60!} Required: Prepare a prot variance analysis