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 13 lbs 0.325 $1.40 $18.20 Cheese 15 0.375 2.80 42.00 Sausage 12 0.300 2.10 25.20 Total 40 lbs $85.40 Mangia put a batch of 2,000 pounds of direct materials (enough for 800 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 780 pizzas. 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?
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 13 lbs 0.325 $1.40 $18.20 Cheese 15 0.375 2.80 42.00 Sausage 12 0.300 2.10 25.20 Total 40 lbs $85.40 Mangia put a batch of 2,000 pounds of direct materials (enough for 800 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 780 pizzas. 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?
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 9CE: Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia developed the...
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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 | |
Tomato sauce | 13 lbs | 0.325 | $1.40 | $18.20 |
Cheese | 15 | 0.375 | 2.80 | 42.00 |
Sausage | 12 | 0.300 | 2.10 | 25.20 |
Total | 40 lbs | $85.40 |
Mangia put a batch of 2,000 pounds of direct materials (enough for 800 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 780 pizzas.
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?
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