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.
Honey Bear Confections (HBC)
Manufacturing Overhead Static Budget Report
For the Month Ended June 20XX
| |
Budget
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Actual
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Variance (U or F)
|
|
Production in bags of candy
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10,000
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12,000
|
2,000F
|
|
Costs:
|
|
Indirect labor
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$26,000
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$31,200
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$5,200U
|
|
Supplies
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$25,000
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$29,500
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$4,500U
|
|
Utilities
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$19,000
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$22,500
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$3,500U
|
|
TOTAL
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$70,000
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$83,200
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$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?