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 Exercise 6-3.
HINT: for more information about this, see the
Weekly Briefing and thePerformance 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 thePerformanceReport 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:
o
Write a short memo to your
supervisor explaining your findings and your recommendations.
o
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?
