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 information provided from the fictitious Honey Bear Confections (HBC) organization in order
to glean information you need 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 Honey Bear
Confections 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. �
To prepare for this Assignment, begin by reviewing the information below. Additionally, you may find
valuable information in your course text, especially Example 6-3. �
Honey Bear Confections �
Manufacturing Overhead Static Budget Report �
For the Month Ended June 20XX �
Budget Actual Variance (U of F) �
Production in bags of candy 10,000 12,000 2,000F �
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: ��
o Prepare a performance report using spreadsheet software, such as Excel. �
o For the next section of this Application, 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 variances in
this example need to be examined? Why or why not?
Performance Report 2
To: Supervisor HCB company
From: financial analyser
Ref: PERFORMANCE REPORT
From the above information, it can be deduced that the company should follow the budgeted cost
rather than use the actual cost.
The actual cost for the production of 10000 and 12000 variances should be considered because
they bring loss to the company.
Performance Report 3
Brockett, A., & Rezaee, Z. (2013). Corporate sustainability: Integrating performance and
reporting. Hoboken, N.J: Wiley.
Vreeland, D., & Vreeland, A. (2013). Memos: The Vogue years, 1962-1971. New York: Rizzoli