Dakota, the chief financial officer (CFO) of the Kelowna Manufacturing Company, is about to undertake his/her monthly review of expenditures. The budget and actual expenditures are shown in the following table.

1.Calculate the difference and % difference for each expense category.

2.For each expense category, explain whether Dakota should investigate the difference between budget and actual.

3.For the 2 most significant differences, propose several reasons or situations that might have caused such difference between budgeted amount and actual expenditure?

4.Provide one suggestion to improve the overall budgeting control process at Kelowna Manufacturing Company.