Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 12.80 lbs 0.320 $1.40 $17.92 Cheese 15.00 0.375 2.70 40.50 Sausage 12.20 0.305 2.00 24.40 Total 40.00 lbs $82.82 Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) into process. Of the total, 600 pounds were tomato sauce, 860 pounds were cheese, and the remaining 540 pounds were sausage. The actual yield was 780 pizzas. Required: 1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage. SM Tomato sauce pounds Cheese pounds Sausage pounds 2. Calculate the mix variance. 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, 600 pounds were tomato sauce, 600 pounds were cheese, and 800 pounds were sausage? How would that affect the mix variance? The mix variance will be Favorable Unfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started