Calculating the Direct Materials Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia develope the following standard mix for spreading on premade pizza shells to produce 16 giant-size,sausage pizzas. Direct Material Tomato sauce Cheese Sausage Total Mix 12.80 lbs 14.40 12.80 40.00 lbs Tomato sauce Cheese Sausage Mix Proportion .0.320 0.360 0.320 SM SP $1.40 2.90 2.00 Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) int process. Of the total, 640 pounds were tomato sauce, 840 pounds were cheese, and the remaining 520 pounds were sausage. The actual yield was 760 pizzas. Standard Cost Required: 1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage. pounds pounds pounds $17.92 41.76 25.60 $85.28
Calculating the Direct Materials Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia develope the following standard mix for spreading on premade pizza shells to produce 16 giant-size,sausage pizzas. Direct Material Tomato sauce Cheese Sausage Total Mix 12.80 lbs 14.40 12.80 40.00 lbs Tomato sauce Cheese Sausage Mix Proportion .0.320 0.360 0.320 SM SP $1.40 2.90 2.00 Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) int process. Of the total, 640 pounds were tomato sauce, 840 pounds were cheese, and the remaining 520 pounds were sausage. The actual yield was 760 pizzas. Standard Cost Required: 1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage. pounds pounds pounds $17.92 41.76 25.60 $85.28
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 9CE: Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia developed the...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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 spreading on premade pizza shells to produce 16 giant-size,sausage
pizzas.
Direct Material
Tomato sauce
Cheese
Sausage
Total
Mix
12.80 lbs
14.40
12.80
Tomato sauce
Cheese
40.00 lbs
Sausage
Mix Proportion
SM
.0.320
0.360
0.320
Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) into
process. Of the total, 640 pounds were tomato sauce, 840 pounds were cheese, and the remaining
520 pounds were sausage. The actual yield was 760 pizzas.
SP
$1.40
2.90
2.00
Required:
1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage.
pounds
pounds
pounds
Standard Cost
$17.92
41.76
25.60
$85.28](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4afc761-7528-48e5-b8e4-d92b612a2273%2F43927e97-e4b4-47ed-a7ae-d48e530fbb2a%2Ff562ncc_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Tomato sauce
Cheese
Sausage
Total
Mix
12.80 lbs
14.40
12.80
Tomato sauce
Cheese
40.00 lbs
Sausage
Mix Proportion
SM
.0.320
0.360
0.320
Mangia put a batch of 2,000 pounds of direct materials (enough for 800 frozen sausage pizzas) into
process. Of the total, 640 pounds were tomato sauce, 840 pounds were cheese, and the remaining
520 pounds were sausage. The actual yield was 760 pizzas.
SP
$1.40
2.90
2.00
Required:
1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage.
pounds
pounds
pounds
Standard Cost
$17.92
41.76
25.60
$85.28
![mapter 9, Assignment 2
1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage.
Tomato sauce
Cheese
Sausage
SM
2. Calculate the mix variance.
pounds
pounds
pounds
3. Calculate the actual proportion used of tomato sauce, cheese, and sausage.
Actual mix proportion
Check My Work
Tomato sauce
Cheese
Sausage
Using the results, would the direction of the mix variance be favorable or unfavorable?
%
%
4
%
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
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4afc761-7528-48e5-b8e4-d92b612a2273%2F43927e97-e4b4-47ed-a7ae-d48e530fbb2a%2Ffzg0y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:mapter 9, Assignment 2
1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage.
Tomato sauce
Cheese
Sausage
SM
2. Calculate the mix variance.
pounds
pounds
pounds
3. Calculate the actual proportion used of tomato sauce, cheese, and sausage.
Actual mix proportion
Check My Work
Tomato sauce
Cheese
Sausage
Using the results, would the direction of the mix variance be favorable or unfavorable?
%
%
4
%
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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