During the Covid-19 pandemic, Rose Bud lost her job at a property management company. As a result, she decided to pursue her life dream of having her own company. Rose also loves the outdoors and nature. Part of her dreams is to incorporate garden nursery and outdoor elements into her business. Roses brother Pino Noir is a winemaker at a big winery. He arranged that Rose could buy the used wine barrels at a good price. Rose turns these wine barrels into pot plant holders. They are a popular choice for instant planter boxes. They're low maintenance, long-lasting, and large enough for roots to flourish. Plus, their traditional rustic oak adds character to any garden space. Consistent with her dreams, Rose started incorporating her new company and named it Go Green. Two years after the start of Covid-19, all is going very well at Go Green and thinking back, starting her own business, is one of the best things that Rose has ever done. To continuously improve her business, Rose has asked you to assist her with a cost- and variance analysis of the wine barrels that she sells as pot planters. Rose provides you with the following information: The annual output/sales are budgeted at 3 200 units. The standard cost per unit is : Raw Material : 1 600 barrels @ R 1 600 per barrel Labour: 4 000 hours at R 30 per hour Budget fixed overheads for the year: R 1 200 000 The standard selling price: R 1 500 per unit During the year the output of the factory was 3 220 units, all of which were sold. The invoiced amount was R 4 910 500. The input cost for 1 620 barrels amounted to R 2 608 200. Production employees booked 4 150 hours to process and were paid R 132 800. Total overheads were R 1 225 000.

1. Formulate and calculate the variance analysis between the actual- and the budget profit for the wine barrel pot planters for the financial year and clearly indicate whether the variances are favourable or unfavourable. All calculations must be shown and rounded to the nearest two decimals.