Question

Access Part I of the IG009 Assessment Scenarios document. Honey Bear Confections (HBC) is a small organization dedicated to making bear-shaped sweets with honey as a sugar substitute. You have just been promoted to the position of manager of the production department at HBC when your supervisor shows you a static budget report. She tells you to “get it fixed.” You suspect she is alluding to a problem with productivity and efficiency. Review the “HBC Static Budget Report,” and then prepare a performance report using spreadsheet software, such as Excel.

Part I: Performance Report and Variances

HBC Static Budget Report

Honey Bear Confections (HBC) Manufacturing Overhead Static Budget Report For 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

Answer 1

Performance Report
	A	B	A-B	Amount $
	Flexible Budget	Actual	Variance	(U or F)
Production in bags of candy	12,000	12,000	-
Costs:
Indirect labor	31,200	31,200	-
Supplies	30,000	29,500	500	F
Utilities	22,800	22,500	300	F
TOTAL	84,000	83,200	800	F

Working
	A	B	A-B	Amount $
	Flexible Budget	Actual	Variance	(U or F)
Production in bags of candy	12,000	12,000	-
Costs:
Indirect labor	=26000/10000*12000	31,200	-
Supplies	=25000/10000*12000	29,500	500	F
Utilities	=19000/10000*12000	22,500	300	F
TOTAL	84,000	83,200	800	F