Compute variances for the following items and indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

Item

	Budget		Actual		Variance		Effect
Sales price	$534		$668
Sales revenue	$618,000		$589,000
Cost of goods sold	$369,000		$398,500
Material purchases at 5,000 pounds	$293,500		$284,000
Materials usage	$187,000		$193,500
Production volume	945	units	1,040	units		units
Wages at 4,000 hours	$59,600		$61,800
Labor usage at $16 per hour	$98,800		$96,900
Research and development expense	$38,500		$31,000
Selling and administrative expenses	$49,000		$62,500