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Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are...

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Accounting

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.
Direct Labor Mix Mix Proportion SP Standard
Cost
Machine operators 0.5 hr.0.50 $16 $ 8
Packers 0.50.50126
Total 1.0 hr. $14
Mangia's recent batch (designed to produce 400 pizzas) used 400 direct labor hours. Of the total, 160 were for machine operators, and the remaining 240 hours were for packers. The actual yield was 780 pizzas.
Required:
1. Calculate the standard mix (SM) in hours for machine operators and for packers.
SM
Machine operators fill in the blank 1 hours
Packers fill in the blank 2 hours
2. Calculate the mix variance.
$fill in the blank 3
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 fill in the blank 5%
Packers fill in the blank 6%
Using the results, would the direction of the mix variance be favorable or unfavorable?

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