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).