Perform a variance analysis for Exxon Mobil Corporation's production costs for the year 2023. Compare the actual costs incurred with the budgeted costs and identify the reasons for any variances. Analyze the impacts of favorable and unfavorable variances on Exxon Mobil's profitability. Provide recommendations to management for improving cost control and minimizing future variances.
Values:
•Budgeted Production Costs: $100,000,000
•Actual Production Costs: $110,000,000