1. Calculating the Direct Materials Mix Variance

   Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia developed the following standard mix for spreading on premade pizza shells to produce 16 giant-size sausage pizzas.

   Direct Material	Mix	Mix Proportion	SP	Standard Cost
   Tomato sauce	12.80 lbs	0.320	$1.50	$19.20
   Cheese	15.00	0.375	2.70	40.50
   Sausage	12.20	0.305	2.00	24.40
   Total	40.00 lbs			$84.10

   Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) into process. Of the total, 660 pounds were tomato sauce, 860 pounds were cheese, and the remaining 480 pounds were sausage. The actual yield was 770 pizzas.

   Required:

   1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage.

   	SM
   Tomato sauce	fill in the blank 1 pounds
   Cheese	fill in the blank 2 pounds
   Sausage	fill in the blank 3 pounds

   2. Calculate the mix variance. $fill in the blank 4

   FavorableUnfavorable

   3. Calculate the actual proportion used of tomato sauce, cheese, and sausage.

   	Actual mix proportion
   Tomato sauce	fill in the blank 6 %
   Cheese	fill in the blank 7 %
   Sausage	fill in the blank 8 %

   Using the results, would the direction of the mix variance be favorable or unfavorable?

   FavorableUnfavorable

   4. What if of the total 2,000 pounds of ingredients put into process, 660 pounds were tomato sauce, 660 pounds were cheese, and 680 pounds were sausage? How would that affect the mix variance? The mix variance will be

   FavorableUnfavorable