Assignment:
Application: Using Performance Reports to Inform Organizational Decisions
Very often, managers are called upon to make decisions "by the numbers." In this Assignment, you will sort through a budget report from the fictitious Honey Bear Confections (HBC) organization in order to make decisions about productivity levels.
HBC is a small organization dedicated to making bear-shaped sweets with honey as a sugar substitute. You have just been promoted to a position as manager of the production department at HBC when your supervisor shows you the following report. She tells you to "get it fixed." You suspect she is alluding to a problem with productivity and efficiency.
For this Assignment, review the Static Budget Report provided. Additionally, you may find valuable information in your course text, especially
HINT: for more information about this, see the Weekly Briefing and the Performance Report video.
Honey Bear Confections (HBC)
Manufacturing Overhead Static Budget Report
For the Month Ended June 20XX
| |
Budget
|
Actual
|
Variance (U or F)
|
|
Production in bags of candy
|
10,000
|
12,000
|
2,000F
|
|
Costs:
|
|
Indirect labor
|
$26,000
|
$31,200
|
$5,200U
|
|
Supplies
|
$25,000
|
$29,500
|
$4,500U
|
|
Utilities
|
$19,000
|
$22,500
|
$3,500U
|
|
TOTAL
|
$70,000
|
$83,200
|
$13,200U
|
The Assignment:
Part 1: Prepare a performance report using spreadsheet software, such as Excel. Hint: Read the Weekly Briefing and watch the Performance Report video on this topic.
Part 2: For the next section of this Assignment, please utilize a word processing software (such as Word) to complete the following:
Write a short memo to your supervisor explaining your findings and your recommendations.
In your memo, as part of your recommendations, take a position on the following: Do all the variance in this example need to be examined? Why or why not?