Determining amount and type (favorable vs. unfavorable) of variance

Required

Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U).

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Budget Item Actual Variance For U Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses $650 $580,000 $385,000 $275,000 $180,000 $525 $360,000 $280,000 $178,000 900 units 950 units $60,000 $96,000 $22,000 $49,000 $58,700 $97,000 $25,000 $40,000