Tondamakers produced and sold 1,000 Tonda riding lawnmowers

Tondamakers produced and sold 1,000 Tonda riding lawnmowers in Year 2. Relevant data follow:
Actual Results for Year 2:
Direct Materials: 11,000 Pounds at $19 .......................................................... $209,000
Direct Labor: 2,050 Hours at $31....................................................................... $ 63,550
Manufacturing Overhead ($205,000 fixed) ...................................................... $245,000
Actual Marketing and Administrative Costs ($320,000 fixed) ……................ $380,000
Total Revenue: 1,000 Units at $940.................................................................. $940,000
Actual Machine Hours Worked........................................................................ 550 Hours

Standards and budgets for Year 1: Variable Costs per Unit:
Materials: 10 Pounds at $20................................................................................ $ 200
Labor: 2 Hours at $30........................................................................................... $ 60
Variable Overhead: .5 Machine Hours at $80 ...................................................... $ 40
Fixed Manufacturing Costs ........................................................................... $200,000
Sales Volume................................................................................................. 900 Units
Marketing and Administrative Costs..............................$350,000 + $50 per Unit Sold
Sales Price............................................................................................. $1,000 per Unit

Using the profit and cost variance framework that appears in Exhibit 10.7, explain the differences in operating profit between the budgeted and actual amounts.