Beaches & Waves Company currently produces kid pail and shovel kits in an automated process. The 2022 operating budget is based on the following factors: Sales 20,000 Units Selling Price $ 8.00 per unit Variable Direct Material 2.00 per unit Variable Direct Labor 1.50 per unit Variable Overhead 1.75 per unit Fixed Costs 25,000 total Actual sales were 14,000 units at $9 each. Actual variable direct material costs were $3.00 per unit, actual variable direct labor was $1.00 per unit, actual variable overhead costs were $2.00 per unit, and actual fixed costs were $18,000 for the year.

Required: Perform a Level 1 Variance Analysis by comparing the actual results to the static budget. Include whether the variance is Favorable (F) or Unfavorable (U).