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 glant-size sausage pizzas. SP Direct Material Mix Mix Proportion Standard Cost Tomato sauce 10 ibs. 0.325 $1.50 $15.00 Cheese 1 0.365 2.90 31.90 Sausage 0.310 2.00 18.00 Total 30 ibs. $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 750 pizzas. Required: 1. Calculate the yield ratio based on the standard amounts given. If required, round your answer to two decimal places. 0.60 2. Calculate the standard cost per pound of the yield. If required, round your answer to the nearest cent. 3.61 v 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. 1,200 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. 1,625 x Unfavorable 5. What if the total 2,000 pounds of direct materials put into process resulted in a yield of 1,225 pizzas? How would that affect the yield variance? The yield variance would be Favorable
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 glant-size sausage pizzas. SP Direct Material Mix Mix Proportion Standard Cost Tomato sauce 10 ibs. 0.325 $1.50 $15.00 Cheese 1 0.365 2.90 31.90 Sausage 0.310 2.00 18.00 Total 30 ibs. $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 750 pizzas. Required: 1. Calculate the yield ratio based on the standard amounts given. If required, round your answer to two decimal places. 0.60 2. Calculate the standard cost per pound of the yield. If required, round your answer to the nearest cent. 3.61 v 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. 1,200 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. 1,625 x Unfavorable 5. What if the total 2,000 pounds of direct materials put into process resulted in a yield of 1,225 pizzas? How would that affect the yield variance? The yield variance would be Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i need help with question 4
Transcribed Image Text: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 glant-size sausage pizzas.
Direct Material
Mix Proportion
Mix
SP
Standard Cost
Tomato sauce
10 ibs.
0.325
$1.50
$15.00
Cheese
11
0.365
2.90
31.90
Sausage
9.
0.310
2.00
18.00
Total
30 (bs.
$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 750 pizzas.
Required:
1. Calculate the yield ratio based on the standard amounts given. If required, round your answer to two decimal places.
0.60
2. Calculate the standard cost per pound of the yield. If required, round your answer to the nearest cent.
3.61 v 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.
1,200 v 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.
1,625 x Unfavorable
5. What if the total 2,000 pounds of direct materials put into process resuited in a yield of 1,225 pizzas? How would that affect the yield
variance?
The yield variance would be Favorable
Feedback
*Check My Work
1. Yield ratio= Total output + Total input
2. Spy Standard cost of the yield (equal to total cost of a standard batch divided by the amount of the yield)
3. Standard yleld = Yield ratio x Total actual inputs
4. Yleld variance - (Standard yield - Actual yield) x Spy
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education