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?

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

In preparing the report, consider the learning objectives for this unit.