1. WhitePen Company makes correction pens. The profit plan and actual results for the previous year, 2020, are as follows:

	Profit Plan		Actual Results
	Volume	Dollars	Volume	Dollars
Sales	12,000	60,000	18,000	72,000
Cost of Goods Sold
Raw material (KGs)	3,600	21,600	6,300	34,650
Raw material (Liters)	1,200	12,000	1,980	15,840
Labor (Hours)	300	7,200	720	11,520
Contribution Margin		19,200		9,990
Other costs
Depreciation		7,200		3,900
Rent		4,500		1,800
Maintenance		4,800		1,800
Profit before interest and tax		2,700		2,490

The plant manager, Randa, has instructed the plant management accountant to prepare a detailed report to be sent to corporate headquarters comparing each components 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.