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

Name: Calculating the Direct Labor Mix VarianceMangia Pizza Company makes f
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
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

See similar textbooks

Similar questions

Joint Cost Allocation-Weighted Average Method Konami Code Gaming produces two types of high-end gaming controllers, one with a casing made of a polymer that looks like walnut wood and another with a casing made with a polymer that looks like red oak. The casings are made through a joint production molding process that produces 294 red oak casings and 252 walnut casings at the split-off point. The polymer for the red oak casings requires twice as much cooling time as the polymer for the walnut casings, although all casings are removed from the joint molding process at the same time (i.e., once the cooling for the red oak casings is complete). The joint production process costs a total of $5,000. Assuming the company allocates joint costs using the weighted average method based on the required cooling time of the two joint products, determine the amount of joint production costs allocated to each type of casing using the weighted average method. Joint Product Red oak casing Walnut casing…
Preparing a Standard Cost Card -Redwing EXO-7 Industries manufactures a Redwing reconnaissance drone. The following information pertains to its manufacturing costs. To make one redwing unit it takes 2 pounds of titanium and 0.5 pounds of carbon fiber. The company expects 0.01 pounds of waste for titanium and 0.02 waste for the carbon fiber materials. Titanium costs are anticipated at $10.25 per pound and carbon fiber costs are anticipated at $5.25 per pound. A 1% discount is offered to EXO-7 Industries from its suppliers. The redwing unit requires two labor processes to complete it -assembly and programming. Assembly laborers are paid $17 per hour and programming laborers are paid $27 per hour. Fringe benefits and payroll taxes for assembly and programming laborers amount to $1.75 and $5.25 per hour, respectively. Based on the company’s experience and research, it expects to use 5.0 hours of assembly and 10 hours of programming. The company uses direct labor hours as…
Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,400 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 2,300 lbs. $ 0.52 per lb. Vinegar 130 gal. $ 3.20 per gal. Corn syrup 11 gal. $ 11.60 per gal. Salt 52 lbs. $ 2.90 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K-111 were as follows: 2,400 lbs. of tomatoes 125 gal. of vinegar 12 gal. of corn syrup 51 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Ingredient Standard Cost per Batch Whole tomatoes $ Vinegar $ Corn syrup $ Salt $ Total $ Standard unit materials cost per pound $ b. Determine the direct materials quantity variance for batch K-111. If required, round amounts to the nearest cent. Enter a…
Standard Product Cost Sana Rosa Furniture Company manufactures designer home furniture. Sana Rosa uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $20.00 per hr. standard time per unit 3.00 hrs. Direct materials (oak): standard price $10.00 per bd. ft. standard quantity 18 bd. ft. Variable factory overhead: standard rate $2.80 per direct labor hr. Fixed factory overhead: standard rate $1.20 per direct labor hr. a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.$fill in the blank 1 per dining room table b. A standard cost system provides Rosa Furniture management a cost control tool using the principle of cost control . Using this principle, minor cost deviations from standards can be investigated and corrected.
Standard Cost Journal Entries Bellingham Company produced 4,400 units that require eight standard pounds per unit at a $8 standard price per pound. The company actually used 36,300 pounds in production. Journalize the entry to record the standard direct materials used in production. If an amount box does not require an entry, leave it blank.
Make or Buy Specialty Metal Products, Inc. manufactures filters for use in custom over-the-range hoods. The costs per unit, for a batch of 10,000 filters, are as follows. Direct materials $4.00 Direct labor 2.00 Variable overhead 1.00 Fixed overhead 4.00 Total costs $11.00 Custom Kitchens has offered to sell 10,000 filters to Specialty Metal Products for $12 per filter. If Specialty Metal Products accepts Custom Kitchens’ offer, the facilities used to manufacture filters could be used to produce BBQ grates. Revenues from the sale of BBQ grates are estimated at $19,000, with variable costs amounting to 80% of sales. In addition, $1 per unit of the fixed overhead associated with the manufacture of filters could be eliminated. Compute the following: Cost to make filters Answer Cost to buy filters Answer Should Specialty Metal Products accept Custom Kitchens’ offer? A. Yes, the cost to purchase the filters is less than the cost to make them. B. No, the…
Gerber Clothing Inc. has designed a rain suit for outdoor enthusiasts that is about to be introduced on the market. A standard cost card has been prepared for the new suit, as follows: Standard Quantity or hours Standard price or Rate Standard Direct materials 2.2 metres Direct labour 1.0 hours Manufacturing overhead (1/6 variable) 1.0 hours $ 15 per metre 33 per hour 21 per hour Cost $33.00 Total standard cost per suit 33.00 21.00 $87.00 a. The only variable selling and administrative costs will be $6 per suit for shipping. Fixed selling and administrative costs will be as follows (per year): Salaries Advertising and other Total $ 35,400 157,000 $192,400 b. Since the company manufactures many products, it is felt that no more than 10,500 hours of labour time per year can be devoted to production of the new suits. c. An investment of $550,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment. The company wants a 20% ROI in new product…
Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4 pounds of the material, Ike uses 3 pounds of the material, and Bix uses 6 pounds of the material. Selling price per unit and variable costs per unit of each product follow. Selling price per unit Variable costs per unit Kin $ 160 96 Contribution margin per pound Ike $ 112 85 Bix $ 210 144 (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Product Contribution Margin Order in which management should produce and meet demand: Kin Ike Bix
A firm makes a range of running shoes. There are three models – Short; Middle; and Long distance. The products are aimed at different segments of the market. Product costs are computed using an overhead rate based on the labour hour method. Selling prices are set on full cost plus 20%. A unit refers to a pair of running shoes. The following information is available: Short distance Middle distance Long distance Direct material cost per unit $25 $35 $40 Labour hours per unit 2 hrs 2 hrs 2 hrs Labour rate per hour $12 $12 $12 Total labour hours used 120,000 hrs 24,000 hrs 16,000 hrs Total number of units 60,000 units 12,000 units 8,000 units Cost driver information: Short distance Middle distance Long distance No. of machine hours 60,000 48,000 48,000 No. of material orders 30 100 200 No. of sales orders 12 48 63 The total overhead costs for the business amount to $1.2…