Calculating the Yield 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

Tomato sauce $13$ lbs $0\mathrm{.}325$ $$1\mathrm{.}40$ $$18\mathrm{.}20$

Cheese $150\mathrm{.}3752\mathrm{.}8042\mathrm{.}00$

Sausage $120\mathrm{.}3002\mathrm{.}1025\mathrm{.}20$

Total $40$ lbs $$85\mathrm{.}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.

Required:

$1.$ Calculate the yield ratio based on the standard amounts given. If required, round your answer to two decimal places.

fill in the blank $1$

$2.$ Calculate the standard cost per pound of the yield. If required, round your answer to the nearest cent.

$fill in the blank $2$ per pizza

$3.$ Calculate the standard yield for actual input of $2,000$ pounds of direct materials.

fill in the blank $3$ pizzas

$4.$ Calculate the yield variance. If required, round your answer to the nearest cent.

$fill in the blank $4$

$5.$ What if the total $2,000$ pounds of direct materials put into process resulted in a yield of $825$ pizzas? How would that affect the yield variance?

The yield variance would be

$.$