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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
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 16.00 lbs 0.320 $1.50 $24.00 Cheese 18.75 0.375 2.70 50.63 15.25 Sausage 0.305 2.10 32.02 Total 50.00 lbs $106.65 Mangia put a batch of 2,000 pounds of direct materials (enough for 640 frozen sausage pizzas) into process. Of the total, 640 pounds were tomato sauce, 860 pounds were cheese, and the remaining 500 pounds were sausage. The actual yield was 760 pizzas. Required: 1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage. SM Tomato sauce pounds Cheese pounds unds 10 eese, and to sausage. SM Tomato sauce pounds Cheese pounds Sausage pounds 2. Calculate the mix variance. S 3. Calculate the actual proportion used of tomato sauce, cheese, and sausage. Actual mix proportion Tomato sauce % Cheese % % Sausage Using the results, would the direction of the mix variance be favorable or unfavorable? 4. What if of the total 2,000 pounds of ingredients put into process, 640 pounds were tomato sauce, 640 pounds were cheese, and 720 pounds were sausage? How would that affect the mix variance? The mix variance will be
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