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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
$14
Variable costs:
Unit variable cost:
Direct materials
$52,800
$5
Direct labor
51,000
4
Variable overhead
23,000
2
Total variable costs
$126,800
Total unit variable costs
$11
Fixed overhead
$9,000
$9,600
Required:
Prepare a variance analysis to compare actual results and master budget.
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