1. For most input resources, the actual cost per unit is substantially higher than the budgeted cost per unit. What are some possible reasons for this variance? 2. How I do prepare a revised performance report for August that is more appropriate for measuring the production department's performance? When preparing the revised performance report, consider that the actual volume was different from the budgeted volume and the volume difference was not within the production manager's control.

3. Formal budgets list all revenues, expenses, and profits and are approved by top management or a budget committee. What benefits do companies expect through a formal budgeting process? Of these advantages, which ones do MHL's budget process, as administered by Bosch achieves?