The accountant at EZ Toys Inc. is analyzing the production and cost data for i

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

10000 trucks produced and sold

12000 trucks planned

Unit selling price

$15

Unit selling price

$14

Variable costs:

Unit variable cost:

Direct materials

$52800

Direct materials

$5

Direct labor

51000

Direct labor

4

Variable overhead

23000

Variable overhead

2

Total variable costs

$126800

Total unit variable costs

$11

Fixed overhead

$9000

Fixed overhead

$9600

Required:

Prepare a variance analysis to compare actual results and master budget.