Question
1 Below is the budget performance report prepared for Dhahran Manufacturing for the year ending December 31, 2020 Dhahran Manufacturing Budget Report For the Year
1 Below is the budget performance report prepared for Dhahran Manufacturing for the year ending December 31, 2020
Dhahran Manufacturing
Budget Report
For the Year Ended December 31, 2020
Budget Actual Difference
Favorable (F)
Unfavorable (U)
| Production in units | 50,000 tones | 60,000 | SR 120,000 |
| Costs: |
|
|
|
| Direct materials | SR 400,000 | 450,000 | SR 50,000 U |
| Direct labor | 200,000 | 240,000 | 40,000 U |
| Variable manufacturing overhead: |
|
|
|
| Indirect materials | 50,000 | 60,000 | 10,000 U |
| Indirect labor | 30,000 | 45,000 | 15,000 U |
| Utilities | 70,000 | 73,000 | 3,000 U |
| Depreciation- Equipment | 20,000 | 20,000 | 0 |
| Supervision | 25,000 | 25,000 | 0 |
| Property taxes | 5,000 | 5,000 | 0 |
|
| SR 800,000 | SR 918,000 | SR 118,000 U |
You are required by the Financial Controller to evaluate the report and provide clear steps and guidelines as to how to improve the contents of the report so that it will be very beneficial for measuring performance of Dhahran Manufacturing. (Note no calculations are required).
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
978-1119502425
