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Calculating the Direct Labor Mix Variance Mangia Puzza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor:
Calculating the Direct Labor Mix Variance Mangia Puzza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mange developed the following standard mix for spreading on premade pizza shells to produce 16 giant-se sausage pizzas SP Direct Labor Machine operators Packers Total Mix 0.5 he 0.5 1.0 h Mix Proportion 0.50 0.50 $16 Standard Cost $ 8.00 6.50 $14.50 13 Mangla's recent batch (designed to produce 400 pizzas) used 400 direct labor hours of the total, 160 were for machine operators, and the remaining 240 hours were for packers. The actual yield was 780 pizzas Required: Instructions for parts 2 and 3: 1 a variance is zero, enter and select "Not applicable from the drop down box 1. Calculate the standard (SM) in hours for machine operators and for packers SM Machine operator noun Packers hosis 2. Calculate the manner Favorable 3. Calculate the actual portion of hours worried by the operators and by Enter the percentages as whole umbes Actual mix proportion Machine operator instructions for parts 2 and 3: If a variance is zero, enter "o" and select "Not applicable" from the drop down box. Calculate the standard mix (SM) in hours for machine operators and for packers. SM hours Machine operators hours Packers 2. Calculate the mix variance. Favorable 3. Calculate the actual proportion of hours worked by machine operators and by packers. Enter the percentages as whole numbers. Actual mix proportion Machine operators % Packers % Using the results, would the direction of the mix variance be favorable or unfavorable? Favorable
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