ipl-logo

The Budget-To-Actual Variance Report For Wood's Furniture

1036 Words5 Pages

The purpose of this memo is to summarize the budget-to-actual variance report for Wood’s Furniture Inc. as of December 31, 2017. While Wood’s Furniture expected to generate $70,000 in net profit by the end of the year, the organization actually reports $53,800 as net profit which entails to 23% below expected. Based on monthly reports, the net profit was expected to go down, but 23% decline seems to be a concern.
Mentioned below is my high level analysis of some of the items from the report and I would like each of you to review and respond back with your detailed analysis related to your department.
Year-to-date Revenues:
The total revenue budgeted for this period was $1,700,00, while actual revenue earned is $1,575,000. This 7% deficit in …show more content…

This variance is comparatively higher than other materials. I would like management of purchasing department to research the cost increase on metal. Arguably, the fluctuation in commodity prices might have affected it’s price. However, I will recommend to do market research and find out if similar quality metal is available at a budgeted price from different vendor. I will also suggest purchasing and production team to work together to come up with an accurate quantity of materials required to meet our production target so that we can take advantage of discounted volume price from this vendor and not overpay for ordering in chunks. In addition, production management should perform an analysis of quality of metal used in manufacturing and make sure that appropriate quality material is used rather than using higher quality material when not required and paying more …show more content…

It appears that we are not using our skilled labors efficiently. My suggestion to production management will be doing some analysis of our manufacturing process and make sure that tasks assigned to skilled workforce are executed efficiently. In addition, I will recommend production management to work with purchasing management and see if we can improve efficiency with better quality materials without deviating from budgeted material cost. I would also like HR department to come up with some team building programs which will motivate the workforce, boost the morale and in-turn, improve the

Show More
Related
616 Words | 3 Pages

It is imperative to understand the current conditions of what materials are candidates for return, compared to the performance level of returns achieved each day. The delta between the identified material returns and the actual returns will provide information for goal setting. Additionally, with the transfer of raw materials into the warehouse, there must be a transaction to receive it into inventory and distribute it to the appropriate location. At that point, the process will be complete for the appropriate accounting of the materials, creating availability for consumption at the next production demand. The data collected will be influential in developing a robust procedure for each assembly line to follow in a consistent manner.

Read More
723 Words | 3 Pages

b) TQM (Total Quality Management). c) Inventory

Read More
515 Words | 3 Pages

The net income amount that is shown on three statements show $80,322 in the thousands. The three statements are operation statement, income statement, and the cash flow statement. Per all three statements the net income has decreased in the thousands over the last three fiscal years (Bethel University,

Read More
915 Words | 4 Pages

Feel free to reach out to me if you need additional copies of the financial statements other than the ones I have provided, as well as additional clarification if any of these calculations are confusing. I understand the importance of the need to make these important

Read More
463 Words | 2 Pages

To be more fair to the workers just make shifts. Having shifts will make the factory less packed so it will be easier for the workers to work. These problems are easy to fix and need to be fixed. Make a difference and fix these

Read More
1039 Words | 5 Pages

Nursing Department Valance Analysis The company budget spending for the nursing department expenses for the year 2014 was expected to be $2,149,141 and the actual nursing spending expenses for year the 2014 were $1,541,322.According to above figure the organization spent less than the budgeted spending on the nursing department. Nursing department Valance Analysis A variance is found by subtracting actual Expenditures from budgeted expenditures (Actual Expenditures – Budgeted Expenditures) $1,541,322- $2,149,141 = -607,819 A Variances in percentage is equal to variance/budget expenditures x100 (-607819/2149141) *100% =

Read More
1059 Words | 5 Pages

Intended Project Goal - Ensure a continuous supply of raw materials to facilitate uninterrupted production. - Maintain sufficient stock of raw materials in periods of short supply and anticipate price changes. - Maintain sufficient finished good inventory for smooth sales operation, and efficient customer service. - Minimize the carrying cost and time. - Control investment in inventory and keep it at an optimum level.

Read More
1689 Words | 7 Pages

As the role of manufacturing increased in the overall competitive strategy of many companies, maintenance would be increasingly pressurized to find ways of improving its cost effectiveness and quality of service. Multi‐skilling was an important way of reducing costs and improving performance. A description of the nature and extent of multi‐skilling among production and maintenance jobs in UK manufacturing industry were given and some of the operational costs and benefits of multi‐skilling were

Read More
210 Words | 1 Pages

If you truly master woodworking, the practice can be an income source as well as a hobby. Professional woodworker Jeff Miller’s arch table perfectly exemplifies this. At one point in his career Popular Woodworking asked him to do one of his signature pieces. This arch table is part of his company logo and a piece he had specialized in for 20 years. Unfortunately, he has just made a table and delivered it to his client and was forced to build a new one.

Read More
841 Words | 4 Pages

VF corporation continued to show profit in the same year. Columbia Sportswear Account receivable turnover was still averaging 5:1 and the VF corporation account receivable turnover also remained the same as the prior year. The successful company earned 11 million in income compared to 1 million dollars even though both companies showed variation in earnings. One company earned less company and the other company earned more but the turnover ratio stayed the same from the previous year. Th reason being the turn over didn’t significantly change from the previous year cause the average amount of the account receivable did not change.

Read More
886 Words | 4 Pages

Keeping the current staff aboard will reduce costs, also helping to increase profits. Preliminary Ideas for Solving Lower Productivity, Reduced Profit, and Low

Read More
735 Words | 3 Pages

Empower the workers. Allow them to comprehend that they are major. Place confidence in them trust and appreciate them. Supply them expertise and talents. Give suggestions on their efficiency and admire their work and preserve their morale high.

Read More
846 Words | 4 Pages

In case of steel, the equipment is much costlier due to the magnitude of the temperature to which the metal must be heated (2300

Read More
2559 Words | 11 Pages

Section A 1.1 Introduction Process Analysis and Design is a systematic attitude to improve our understanding of the business processes of an organization or better still a roadmap or strategic approach to achieve a unique expectation, it assists in the realization of tangible benefits such as cost reduction, process efficiency, and effective human resource allocation and how and what to do within political, legal, social, environmental, safety and economic constraints in achieving the set objective. The processes and methods used to transform tangible inputs i.e. raw materials, semi-finished goods, subassemblies and intangible inputs such as ideas, information, knowledge into goods or services largely depends on effective management. Process

Read More
1279 Words | 6 Pages

Also, the management must stop practicing unfair labor practices because this will lead to losing employees. Final Strategy and Action Plan What will be your action items or steps to be taken? To talk to the managers and employees regarding the problem and to hear them out. To Hear Out, Empathize, Apologize, and Take Action.

Read More

More about The Budget-To-Actual Variance Report For Wood's Furniture

Related Topics

Open Document