a.Pipe Company makes professional Pipes. The profit plan and actual results for the previous year, 2020, are as follows:

The plant manager, Khaled, has instructed the plant management accountant to prepare a detailed report to be sent to corporate headquarters comparing each component's actual result with the amounts set forth above in the annual budget.

Required: Explain the difference between the expected and actual profit. Show your workings.

Actual Results Profit Plan Volume Pounds Volume Pounds Sales 30,000 360.000 32,000 480.000 Cost of Good Sold Raw material (KG) 3.200 64,000 3,000 45,000 Raw material (L) 7,500 75,000 5,000 80,000 Labor (Hours) 4,000 92,000 5,000 125,000 Contribution Margin 129,000 230,000 Other costs Energy 15,000 25,000 Maintenance 6,000 12,000 Depreciation 10,000 20,000 Selling expenses 20,000 25,000 Advertising 5,000 10.000 Profit before interest 73,000 138,000 and tax