56. (Appendix) Pablo’s three-topping 18-inch frozen pizzas are produced by Quintella Food Industries in Los Angeles. The company uses a standard cost system.

The three toppings (in addition to cheese) for each pizza are onions, olives, and mushrooms. To some extent, discretion may be used to determine the actual mix of these toppings. The company has two classes of labor, and discretion may be used to determine the mix of the labor inputs. The standard cost card for a pizza follows:

Onions: 3 ounces at $0.10 per ounce Olives: 3 ounces at $0.35 per ounce Mushrooms: 3 ounces at $0.50 per ounce Labor category 1: 5 minutes at $12 per hour Labor category 2: 6 minutes at $8 per hour During May 2001, Quintella produced 12,000 pizzas and used the following inputs:

Onions: 2,000 pounds Olives: 3,000 pounds Mushrooms: 2,000 pounds Labor category 1: 1,300 hours Labor category 2: 1,000 hours During the month there were no deviations from standards on material prices or labor rates.

a. Determine the material quantity, mix, and yield variances.

b. Determine the labor efficiency, mix, and yield variances.

c. Prepare the journal entries to record the above mix and yield variances.