The standard production cost for product BT$007$ for October $2023$ were as follows:

Material $4$ kilograms at R$2\mathrm{.}50$ per kilogram

Labour $4$ hours at R$100$ per hour

Variable overheads R$40$ per labour hour

Fixed overheads R$48000$

Normal production $24000$ units per month

Actual results for October $2023$ were as follows:

Material $81000$ kilograms used at R$2\mathrm{.}50$ per kg

Labour $78000$ hours worked at R$96$ per hour

Variable overheads R$44$ per labour hour

Fixed overheads R$53000$

Normal production $20000$ units

Required:

$1\mathrm{.}1$ Calculate and comment $($favourable $/$ unfavourable$)$ on the following variances:

$1\mathrm{.}1\mathrm{.}1$ Raw material usage variance $(5)$

$1\mathrm{.}1\mathrm{.}2$ Fixed overhead spending variance $(5)$

$1\mathrm{.}1\mathrm{.}3$ Variable overhead efficiency variance $(5)$

$1\mathrm{.}2$ Analyse the underlying causes for variances $(5)$

$1\mathrm{.}3$ Evaluate the implications of budgeting for profit maximisation $(5$