Chapter 8 quiz - Chapter 8 In Class Problems 1 The Accountant at EZ Toys Inc is analyzing the production and costs data for its Trucks Division For

# Chapter 8 quiz - Chapter 8 In Class Problems 1 The...

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Chapter 8 In Class Problems1. The Accountant at EZ Toys, Inc. is analyzing the production and costs data for its Trucks Division. For October, the actual results and the master budget data are presented below.Actual ResultsBudget DataProduced and sold 10,000 Production and sales12,000Unit Selling Price\$15Unit Selling Price\$15Variable Costs:Unit Variable Costs:Direct materials \$52,800 Direct materials Direct labor51,000 Direct laborVariable OH23,000Variable OH2Total variable Costs \$126,800 Total unit variable costs Fixed Overhead \$9,000 Fixed Overhead \$9,600Overhead rates are applied using direct labor hours. The Additional information on standard and actual costs is available at EZ Toys’ Trucks Division for October:Standards:2 units of materials per truck @ \$2.5 per unit 0.4 hours of labor per truck @ \$10 per hour Standard variable rate = \$5 per hour (\$2*12,000/4,800 hours). (can be calculated)Standard fixed overhead rate = \$2 per hour (\$9,600/4,800 hours). Actual Materials purchased and used 22,000 units @ \$2.4 per unitActual Direct Labor costs\$54\$11