Cornerstone Exercise 9.11 (Algorithmic) Calculating the Yield 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 19 giant-size sausage pizzas.

Direct Material	Mix		Mix Proportion			SP			Standard Cost
Tomato sauce	10	lbs.		0.320			$1.60			$16.00
Cheese	11			0.380			2.80			30.80
Sausage	9			0.300			2.00			18.00
Total	30	lbs.								$64.80

Mangia put a batch of 2,000 pounds of direct materials (enough for 1,267 frozen sausage pizzas) into process. Of the total, 660 pounds were tomato sauce, 900 pounds were cheese, and the remaining 440 pounds were sausage. The actual yield was 760 pizzas.

Required:

1. Calculate the yield ratio based on the standard amounts given. If required, round your answer to two decimal places.

2. Calculate the standard cost per pound of the yield. If required, round your answer to the nearest cent. $ per pizza

3. Calculate the standard yield for actual input of 2,000 pounds of direct materials. Do not round intermediate calculations. Round your final answer to nearest whole number. pizzas

4. Calculate the yield variance. Do not round intermediate calculations, except for number of pizzas which should be rounded to nearest whole number. If required, round your final answer to the nearest cent. $ - Select your answer

5. What if the total 2,000 pounds of direct materials put into process resulted in a yield of 1,292 pizzas? How would that affect the yield variance?

The yield variance would be