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Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct
Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 18 giant-size sausage pizzas. Standard Direct Labor Machine operators Packers Mix 0.5 hr. Mix Proportion SP 0.50 0.5 0.50 $18 11 Cost $ 9.00 5.50 Total 1.0 hr. $14.50 Mangia's recent batch (designed to produce 300 pizzas) used 300 direct labor hours. Of the total, 120 were for machine operators, and the remaining 180 hours were for packers. The actual yield was 780 pizzas. Required: Instructions for parts 2 and 3: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Calculate the standard mix (SM) in hours for machine operators and for packers. Machine operators Packers 2. Calculate the mix variance. SM hours hours
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