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 boss shows you the following report. She tells you to "get it fixed" if you want to prove you are capable of being a manager. You suspect she is alluding to a problem with productivity and efficiency. After reviewing the following information and making the necessary calculations, what would you recommend?

HoneyBear 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

Part 3: In a 2-paragraph essay respond to the following:

• What is the purpose of variance analysis?
• Should all variances be examined?

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 boss shows you the following report. She tells you to "get it fixed" if you want to prove you are capable of being a manager. You suspect she is alluding to a problem with productivity and efficiency. After reviewing the following information and making the necessary calculations, what would you recommend? HoneyBear 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 $70,000 $83,200 Part 3: In a 2-paragraph essay respond to the following: What is the purpose of variance analysis? Should all variances be examined? $3,500U $13,200U