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 giantsize sausage pizzas.
Direct Labor Mix Mix Proportion SP Standard
Cost
Machine operators hr $ $
Packers
Total hr $
Mangia's recent batch designed to produce pizzas used direct labor hours. Of the total, were for machine operators, and the remaining hours were for packers. The actual yield was pizzas.
Required:
Calculate the standard mix SM in hours for machine operators and for packers.
SM
Machine operators fill in the blank hours
Packers fill in the blank hours
Calculate the mix variance.
$fill in the blank
Calculate the actual proportion of hours worked by machine operators and by packers. Enter the percentages as whole numbers.
Actual mix proportion
Machine operators fill in the blank
Packers fill in the blank
Using the results, would the direction of the mix variance be favorable or unfavorable?
