My production crew used fewer materials than was budgeted, and the average time it took to make each unit was also less than expected. We’ve got to get a handle on both of these costs. However, our cost overruns far exceeded the 5 percent increase. We expected a 5 percent increase in these costs over the original budget since sales were 5 percent higher than anticipated. I am concerned, however, about our direct labor and direct materials costs. We have a great group of salespeople and a terrific product. Credit goes to our sales staff for their hard work! Good work, everyone! It looks as if our sales this past year exceeded the budget! We were expecting to sell 200,000 gallons of ice cream, but it turns out we sold 210,000 gallons.
