Merlot Ltd makes a standard product, which is budgeted to sell at $15 a unit. It is made from a budgeted 0.5 kilograms of material, budgeted to cost $9 per kilogram, and worked on by an employee paid a budgeted $15 per hour, for a budgeted 15 minutes. Monthly fixed overheads are budgeted at $18,000. The output for March was budgeted at 5,000 units. The actual results for March were as follows: No inventories existed at the start or end of March. Required: a) Deduce the budgeted profit for March b) Revised the budgeted performance report using flexible budgeting c) Calculate the variances and comment whether they are favourable or unfavourable