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Problem-
Honey Bear Confections is a small company 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 asks you to prepare an analysis to fix the problem she perceived with employee productivity and efficiency. After reviewing the following information and making the necessary calculations, what would you recommend?
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
Costs:
Indirect labor
$26,000
$31,200
$5,200U
Supplies
$25,000
$29,500
$4,500U
Utilities
$19,000
$22,500
$3,500U
$70,000
$83,200
$13,200U
Additional information-
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