Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 15 giant-size sausage pizzas, Standard Direct Labor Mix Mix Proportion SP Cost Machine operators 0.5 hr. 0.50 $15 $7.50 Packers 0.5 0.50 12 6.00 Total 1.0 hr. $13.50 Mangia's recent batch (designed produce 300 pizzas) used 300 direct labor hours. Of the total, 120 were for machine operators, and the remaining 180 hours were for packers. The actual yield was 780 pizzas. Required: Instructions for parts 2 and 3: If a variance is zero, enter "o" and select "Not applicable" from the drop down box. 1. Calculate the standard mix (SM) in hours for machine operators and for packers. SM Machine operators X hours Packers X hours 2. Calculate the mix variance. X Favorable 3. Calculate the actual proportion of hours worked by machine operators and by packers. Enter the percentages as whole numbers. Actual mix proportion Machine operators Packers

Calculating the Direct Labor Mix Variance Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading on premade pizza shells to produce 15 giant-size sausage pizzas, Standard Direct Labor Mix Mix Proportion SP Cost Machine operators 0.5 hr. 0.50 $15 $7.50 Packers 0.5 0.50 12 6.00 Total 1.0 hr. $13.50 Mangia's recent batch (designed produce 300 pizzas) used 300 direct labor hours. Of the total, 120 were for machine operators, and the remaining 180 hours were for packers. The actual yield was 780 pizzas. Required: Instructions for parts 2 and 3: If a variance is zero, enter "o" and select "Not applicable" from the drop down box. 1. Calculate the standard mix (SM) in hours for machine operators and for packers. SM Machine operators X hours Packers X hours 2. Calculate the mix variance. X Favorable 3. Calculate the actual proportion of hours worked by machine operators and by packers. Enter the percentages as whole numbers. Actual mix proportion Machine operators Packers

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Description: Calculating the Direct Labor Mix VarianceMangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia uses two types of direct labor: machine operators and packers. Mangia developed the following standard mix for spreading o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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