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 19 giant-size sausage pizzas. Direct Material Mix Mix Proportion SP Standard Cost Tomato sauce 10 lbs. 0.335 $1.40 $14.00 Cheese 0.375 2.70 29.70 Sausage 0.290 2.00 18.00 Total $61.70 Mangia put a batch of 2,000 pounds of direct materials (enough for 1,267 frozen sausage pizzas) into process. Of the total, 620 pounds were tomato sauce, 840 pounds were cheese, and the remaining 540 pounds were sausage. The actual yield was 760 pizzas. Required: 1. Calculate the yield ratio based on the standard amounts given. If required, round your answer to two decimal places. 0.63 → 2. Calculate the standard cost per pound of the yield. If required, round your answer to the nearest cent. s 3.25 per pizza 3. Calculate the standard yield for actual input of 2,000 pounds of direct materials. Do not round intermediate calculations. Round your final answer to nearest whole number. 1,267 ✓ pizzas 4. Calculate the yield variance. Do not round intermediate calculations, except for number of pizzas which should be rounded to nearest whole number. If required, round your final answer to the nearest cent. $ 1,647.75 X Unfavorable

Answer 1

- Answer Page No ① © Yield rabi Yield oratio : standard Yield Total yield standard gield = 1367 Total yield = 2000 Yield oratio = 1267 = 0.63 2000 1 :: Yield oratio = 0.63 @ Standard cool pour pound of yield Tobal standard cosf = 2000 x $61140 - $ 123400 Tobal gield in pounds = 1267 x 30 38010

Page No ③ Standar corof per pound of gield - Total standard corof To Total yield is pounds 123400 38010 = 3.25 standard cool per pound of yield =$3125 per pizza ☺ standard yield for actual imput of moto pounds g direct catevals Standard yield for actual input of 2000 pounds of direct materials = 1267 pizzas © Veled variance Yield variance = (Actual yields -o-ardhand yield) x Standard conf gen found of yild = (60 - 1967) 3:25 ý (1667 6) (+ 16 48) on favo table L. Yield Variance = $ 1648 on favorable