Question
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
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 | $1.40 | $22.40 |
Cheese | 18.00 | 0.360 | 2.80 | 50.40 |
Sausage | 16.00 | 0.320 | 2.10 | 33.60 |
Total | 50.00 lbs | $106.40 |
Mangia put a batch of 2,000 pounds of direct materials (enough for 640 frozen sausage pizzas) into process. Of the total, 700 pounds were tomato sauce, 840 pounds were cheese, and the remaining 460 pounds were sausage. The actual yield was 750 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.
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?
4. What if of the total 2,000 pounds of ingredients put into process, 700 pounds were tomato sauce, 700 pounds were cheese, and 600 pounds were sausage? How would that affect the mix variance?
Step by Step Solution
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Step: 1
1 Standard mix in pounds Totmato sauce 2000 0325 650 pounds cheese 20000375 750 pounds Sausage 20...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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