Calculating the Direct Materials Mix Variance Mangia Pizza Company makes frozen

Question

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 13 lbs 15 12 40 Ibs Mix Proportion 0.325 0.375 0.300 SP Standard Cost Tomato sauce Cheese Sausage $1.40 2.80 2.10 $18.20 42.00 25.20 $85.40 Total 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 standard mix (SM) in pounds for tomato sauce, for cheese, and for sausage. SM pounds pounds pounds Tomato sauce Cheese Sausage

Explanation / Answer

1). Standard mix in pounds
Totmato sauce = 2000 * 0.325 = 650 pounds
cheese = 2000*0.375 = 750 pounds
Sausage = 2000* 0.3 = 600 pounds

2).Mix Variance : (Actual Mix - Std Mix)*Std Rate
Totmato sauce = (700-650)*1.4 = 70 U
cheese = (840 - 750)*2.8 = 252 U
Sausage = (460-600)*2.1 = 294 F

3). Actual Proportion used:

Tomato sauce = 700/2000 = 0.35
Cheese =840/2000 = 0.42
Sausage = 460/2000 = 0.23

4). .Mix Variance : (Actual Mix - Std Mix)*Std Rate
Totmato sauce = (700-650)*1.4 = 70 U
cheese = (700 - 750)*2.8 = 140 U
Sausage = (600 - 600)*2.1 = 0

Total Mix variance = 210 U

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