Required
Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select \"None\" if
there is no effect (i.e., zero variance).)
Item
Budget
Actual
Variance
F or U
Sales price
$
664
$
532
Sales revenue
$ 587,000
$ 614,000
Cost of goods sold
$ 395,500
$ 367,000
Material purchases at 5,000 pounds
$ 282,000
$ 290,500
Materials usage
190,500 lbs
185,000 lbs
lbs
Production volume
1,020 units
935 units
units
Wages at 4,000 hours
$ 61,400
$ 59,400
Labor usage at $16 per hour
$ 96,700
$ 98,400
Research and development expense
$ 29,000
$ 35,500
Selling and administrative expenses
$ 59,500
$ 47,000