27. Compute variances for the items shown in the following list and indicate whether each variance is favorable (F) or unfavea (UF). Item Selling and Administrative Expenses Sales Revenue Materials Price Cost of Goods Sold Materials Purchases Materials Usage Sales Price Labor Rate Production Volume Labor Usage Research and Development Expense F or U Budget $ 29,000 Actual $ 47,000 $325,000 $2.20 per lb. $100,000 $265,000 5,800 lbs $500 each $7.95 per hour 900 units $97,000 $22,000 Variance $370,000 $2.00 per lb. $125,000 $250,000 6,000 lbs. $550 each $8.10 per hour 950 units $1066,000 $22,000 28. Day Late Rentals can purchase a van that costs $24,000. The van has an expected useful life of five years and no salvage Day Late expects cash revenue from leasing the van to be $12,000 per year. Alternatively, Day Late can purchase a car thae $16,000. Day Late expects cash revenue from leasing the car to be $10,000 per year over a three-year useful life. Ignore taxes. Determine the payback period for the van and payback period for the car. a. Determine the unadjusted rate of return for the van and for the car. b