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 Actual Variance F or U $580,000 $385,000 $275,000 $180,000 Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Sales price Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses $6D0,000 $360.000 S280,000 S178,000 950 units 60,000 $96,000 22,000 $49,000 900 units $58,700 $97,000 $25,000 $40,000