Bambo is a business that manufactures cutting boards out of bamboo. You are employed as the new management accountant and your first priority is to determine whether new performance and costing standards have to be set by analysing the differences between the actual and expected figures for a particular month. The period under review is the month of November and you are given the following information:

$$ The standard selling price of cutting boards is R$60$ per board to retailers.

$$ Each cutting board is made with a standard $0\mathrm{.}5$m of material expected to cost R$25$ per metre.

$$ Employees who works on the boards are paid a standard rate of R$50\mathrm{.}00$ per hour.

$$ The standard time to make one board is $30$ minutes.

You source the following additional information for the month of November:

$$ Expected monthly fixed overheads are R$18000.$

$$ The expected output for November was $6,000$ units.

The actual results for November were as follows:

Sales revenue $(5,200$ units$)$ R$304000$

Materials $(2,500$m$)($R$72000)$

Labour $(2,400$ hours$)($R$128000)$

Fixed overheads $($R$17350)$

Actual operating profit R$86650$

No inventories existed at the start or end of November. Calculate the expected profit for November based on expected and actual units sold. Show all calculations.

$($Hint: Prepare the fixed and flexed budgeted results.$)$