Calculating the Direct Materials Mix Variance Mangia Pizza Company makes frozen pizzas that are sold...
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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 Mix Mix Proportion SP Standard Cost 16.00 lbs 0.320 $24.00 $1.50 2.90 18.50 0.370 53.65 Tomato sauce Cheese Sausage Total 0.310 2.10 32.55 15.50 50.00 lbs $110.20 Mangia put a batch of 2,000 pounds of direct materials (enough for 640 frozen sausage pizzas) into process. Of the total, 680 pounds were tomato sauce, 860 pounds were cheese, and the remaining 460 pounds were sausage. The actual yield was 750 pizzas. Required: 1. Calculate the standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage. SM Tomato sauce 640 pounds Cheese 740 pounds Sausage 620 pounds 2. Calculate the mix variance. $ 68 X Unfavorable 3. Calculate the actual proportion used of tomato sauce, cheese, and sausage. Actual mix proportion Tomato sauce 32 X % Cheese 44 X % Sausage 20 X % Using the results, would the direction of the mix variance be favorable or unfavorable? Unfavorable
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