Calculating the Yield Variance Refer to Cornerstone Exercise 9.9.
Required:
1. Calculate the yield ratio based on the standard amounts given.
2. Calculate the standard cost per pound of the yield (rounded to the nearest cent).
3. Calculate the standard yield for actual input of 2,000 pounds of direct materials.
4. Calculate the yield variance.
5.  What if the total 2,000 pounds of direct materials put into process resulted in a yield of 825 pizzas? How would that affect the yield variance?

Exercise 9.9.

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Mangia Pizza Company makes frozen pizzas that are sold through grocery stores. Mangia devel- oped the following standard mix for spreading on premade pizza shells to produce 16 giant-size sausage pizzas. Direct Material Mix Mix Proportion SP Standard Cost Tomato sauce 13 Ibs. 0.325 $1.40 S18.20 Cheese 15 0.375 2.80 42.00 Sausage 12 0.300 2.10 25.20 Total 40 Ibs. $85.40