Question

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 18 giant-size sausage pizzas. Direct Material Mix Proportion SP Standard Cost Mix 10 lbs. 0.320 $1.50 $15.00 Tomato sauce Cheese 11 0.375 31.90 2.90 2.00 Sausage 0.305 18.00 Total 30 lbs. $64.90 Mangia put a batch of 2,000 pounds of direct materials (enough for 1,200 frozen sausage pizzas) into process. Of the total, 680 pounds were tomato sauce, 840 pounds were cheese, and the remaining 480 pounds were sausage. The actual yield was 760 pizzas.

Answer 1

Ansux O Calcularte the yield vatio bas ed onthe standard amauntn standad yield yield Ratio Total yicld 2-00 2,000 O.6 yfeld Ratio o.6 Laleulate standaid cost perpound d yeld Total standard Coct tanda Cast per peumd dy yiedd Total yieldin pounds 2,000 x 64.9o 800 x 30 19800 36000 3.60 standaid Cast pev pound d yield = 3.60

Cakeubte standad yield -fo actual input d Pounds dnt mdlrialy Het diveut standand yiehd for actual input dr ,00 paundy d ma-terialy 1,200 P22as Caltulade h Yield varianee' yield Vane kuad yiekd -slandard yiebd yielod x standaid tost per pound G601,200)x 3.Go 440)x2.60 (15e4unjavorale (1584) unfauro ble Cabeulate yrebd varjanec (Attual yietd-stadend Yieka)xlandard cast Pound yietd Yiekc variance = Pe

3 C221200)x X 3.60 2S X 3.60 = 90 favorable 90 favovatule .. vaiance