Very often, managers are called upon to make decisions by the numbers. In this Assignment, you will sort through a budget report from a fictitious organization in order to make decisions about productivity levels. The specific information regarding this organization can be found in the entry titled Week 2 Assignment located in the Doc Sharing link. For this Assignment, review the Static Budget Report posted in the entry titled Week 2 Assignment located in the Doc Sharing link. Additionally, you may find valuable information in your course text, especially Exercise 6-3.

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 variances in this example need to be examined? Why or why not?

Week 2 Assignment

Scenario

The Sweetheart Candy Company is a small organization dedicated to making a variety of sweets for a regional market. You have just been promoted to a position as manager of the production department at Sweetheart Candy Company 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.

Sweetheart Candy Company
Performance Report
For month ending June 20xx
	Budget	Actual	Variance Favorable or Unfavorable
Production in bags of candy	10,000	12,000	2,000
Costs:
Indirect Labor	$ 25,500	$ 30,600	$ 5,100
Supplies	$ 25,000	$ 29,700	$ 4,700
Utilities	$ 19,000	$ 22,600	$ 3,600
Total	$ 69,500	$ 82,900	$ 13,400