15-2 Compute variance for the following items and indicate whether each variance is favorable or unfavorable. Item Budget Actual Variance F or U Sales revenue $580,000 $600,000 Cost of goods sold 385,000 360,000 Material purchases at 5000 LB 275,000 280,000 Materials usage 180,000 178,000 Sales price 500 489 Production Volume 950 UNITS 900 UNITS Wages at 4000 hours $ 60,000 $58,700 Labor usage at $16 per hour 96,000 97,000 Research and development expense 22,000 25,000 Selling and Administrative expenses 49,000 40,000