Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 15 giant-size sausage pizzas, Standard Direct Labor Mix Mix Proportion SP Cost Machine operators 0.5 hr. 0.50 $15 $7.50 Packers 0.5 0.50 12 6.00 Total 1.0 hr. $13.50 Mangia's recent batch (designed produce 300 pizzas) used 300 direct labor hours. Of the total, 120 were for machine operators, and the remaining 180 hours were for packers. The actual yield was 780 pizzas. Required: Instructions for parts 2 and 3: If a variance is zero, enter "o" and select "Not applicable" from the drop down box. 1. Calculate the standard mix (SM) in hours for machine operators and for packers. SM Machine operators X hours Packers X hours 2. Calculate the mix variance. X Favorable 3. Calculate the actual proportion of hours worked by machine operators and by packers. Enter the percentages as whole numbers. Actual mix proportion Machine operators Packers

Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 15 giant-size sausage pizzas, Standard Direct Labor Mix Mix Proportion SP Cost Machine operators 0.5 hr. 0.50 $15 $7.50 Packers 0.5 0.50 12 6.00 Total 1.0 hr. $13.50 Mangia's recent batch (designed produce 300 pizzas) used 300 direct labor hours. Of the total, 120 were for machine operators, and the remaining 180 hours were for packers. The actual yield was 780 pizzas. Required: Instructions for parts 2 and 3: If a variance is zero, enter "o" and select "Not applicable" from the drop down box. 1. Calculate the standard mix (SM) in hours for machine operators and for packers. SM Machine operators X hours Packers X hours 2. Calculate the mix variance. X Favorable 3. Calculate the actual proportion of hours worked by machine operators and by packers. Enter the percentages as whole numbers. Actual mix proportion Machine operators Packers

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Description: Calculating the Direct Labor Mix VarianceMangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading o

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 35P: Refer to the data in Problem 9.34. Vet-Pro, Inc., also uses two different types of direct labor in...

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Refer to the data in Problem 9.34. Vet-Pro, Inc., also uses two different types of direct labor in producing the anti-anxiety mixture: mixing and drum-filling labor (the completed product is placed into 50-gallon drums). For each batch of 20,000 gallons of direct materials input, the following standards have been developed for direct labor: The actual direct labor hours used for the output produced in March are also provided: Required: 1. Compute the direct labor mix and yield variances. (Round standard price of yield to four significant digits.) 2. Compute the total direct labor efficiency variance. Show that the total direct labor efficiency variance is equal to the sum of the direct labor mix and yield variances. Vet-Pro, Inc., produces a veterinary grade anti-anxiety mixture for pets with behavioral problems. Two chemical solutions, Aranol and Lendyl, are mixed and heated to produce a chemical that is sold to companies that produce the anti-anxiety pills. The mixture is produced in batches and has the following standards: During March, the following actual production information was provided: Required: 1. Compute the direct materials mix and yield variances. 2. Compute the total direct materials usage variance for Aranol and Lendyl. Show that the total direct materials usage variance is equal to the sum of the direct materials mix and yield variances.
Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 16 giant-size sausage pizzas.
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.
Only need the answer to number 4 Wildcat Pizza, Inc. produces batches of frozen pizzas to sell at a variety of grocery stores throughout the country. Standard cost information for each batch is presented as follows: Direct materials $60.00 Direct labor 40.00 Variable overhead 30.00 Total $130.00 Wildcat produced and sold 100,000 batches for the year and encountered the following production variances: Direct materials price variance (300,000) Favorable Direct materials quantity variance 290,000 Unfavorable Direct labor rate variance (170,000) Favorable Direct labor efficiency variance (140,000) Favorable Variable overhead spending variance 150,000 Unfavorable Variable overhead efficiency variance (210,000) Favorable Total variable production cost variance (380,000) Favorable Company policy is to investigate all unfavorable variances above 5 percent of the flexible budget amount for direct materials, direct labor, and variable overhead. Identify the…
Variance Performance Analysis Cryolab Inc makes and sells a lawn fertilizer called Hypergro. The company has developed standard costs for one bag of Hypergro as follows: Standard Quantity/Hours Standard Price/Rate Standard Cost per Bag Direct Material 25 pounds ₱ 0.75 ₱18.75 Direct Labor 0.25 hours ₱69.00 ₱17.30 Variable overhead 0.25 hours ₱24.00 ₱ 6.00 Total ₱42.05 The company had no beginning inventories of any kind on January 1. Variable overhead is applied to production on the basis of standard direct labor hours. During January, the following activity was recorded by the company: Production of Fastgro: 23,000 bags Direct materials purchased: 585,000 pounds at a cost of ₱436,250 Direct labor worked: 5,800 hours at a cost of ₱397,300 Variable overhead incurred: ₱140,650 Inventory of direct materials on January 31: 8,000 pounds Compute the variances and indicate whether it is FAVORABLE (F) or UNFAVORABLE (U) in…
Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakesbaguettes for distribution to upscale grocery stores. The company has two direct-cost categories:direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budgetdata for the Sourdough Bread Company:Direct manufacturing labor use 0.02 hours per baguetteVariable manufacturing overhead $10.00 per direct manufacturing labor-hourThe Sourdough Bread Company provides the following additional data for the year endedDecember 31, 2017: Planned (budgeted) output 3,100,000 baguettesActual production 2,600,000 baguettesDirect manufacturing labor 46,800 hoursActual variable manufacturing overhead $617,760 Required:1. What is the denominator level used for allocating variable manufacturing overhead? (That is,for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)2. Prepare a…
Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company: Direct manufacturing labor use 0.02 hours per baguette Variable manufacturing overhead $10.00 per direct manufacturing labor-hour The Sourdough Bread Company provides the following additional data for the year ended December 31, 2017: Planned (budgeted) output 3,100,000 baguettes Actual production 2,600,000 baguettes Direct manufacturing labor 46,800 hours Actual variable manufacturing overhead $617,760 Required: How many direct manufacturing labor-hours is Sourdough Bread budgeting and Prepare a variance analysis of variable…
Your Company makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data: Number of units produced............. 10,000 Material price variance.................. $8,000 Unfavorable Material quantity variance............. $9,800 Favorable Actual direct material used............ 21,000 pounds Direct materials standard price...... $8 per pound What is the actual price per pound? Group of answer choices $8.47 $7.62 $8.38 $7.53
Pretty Draperies manufactures curtains. A certain window requires the following: Direct materials standard: 10 square yards at $5 per yard Direct labor standard: 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. Actual direct labor hours used totaled 7,600 hours for $79,800. Compute the direct manufacturing labor rate (price) and quantity (efficiency) variances for the quarter (show calculations): DL rate variance $_____________________ Circle one: Favorable Unfavorable DL quantity variance $__________________…
Example-2Variable manufacturing overhead variance analysis. The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget data for the Sourdough Bread Company:Direct manufacturing labor use 0.02 hours per baguetteVariable manufacturing overhead $10.00 per direct manufacturing labor-hourThe Sourdough Bread Company provides the following additional data for the year ended December 31, 2017:Required:Planned (budgeted) outputActual productionDirect manufacturing laborActual variable manufacturing overhead3,100,000 baguettes 2,600,000 baguettes 46,800 hours$617,7601. What is the denominator level used for allocating variable manufacturing overhead? (That is, for how many direct manufacturing labor-hours is Sourdough Bread budgeting?)2.…
Your Company makes a single product. Only one kind of direct material is used to make this product. The company uses a standard cost system. The company's cost records for June show the following data: Number of units produced............. 10,000 Material price variance.................. $8,000 Unfavorable Material quantity variance............. $9,800 Favorable Actual direct material used............ 21,000 pounds Direct materials standard price...... $8 per pound What is the standard for pounds per unit? 2.00 2.20 1.98 2.22
1. The Top Company uses a standard costing system and produces custom made plastic toys using the following inputs – and actual data: Input Standard Input per Toy Standard Cost of Input ACTUAL Cost to Produce 270,000 Toys ACTUAL Quantity Used to Produce 270,000 Toys Plastic 380g $0.04/gram $4,044,000 99,600,000 grams Direct Labour 0.25 hours $11.00/hour Required: What is the standard cost of one toy? Calculate the Material PRICE variance using actual production numbers given above and label it FAVOURABLE or UNFAVOURABLE. Calculate the Material QUANTITY variance using actual production numbers given above and label whether it is FAVOURABLE or UNFAVOURABLE. Should only unfavourable variances be investigated – WHY or WHY NOT?