Exercise 15-5 Determining amount and type (favorable vs. unfavorable) of variance LO 15-3 Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance.) Budget $526 Item Actual Variance Effect Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses 652 $ 602,000 681,000 $ 386,500 $361,000 281,500 S 179,000 S 276,000 S 181,500 905 units 960 units units $ 58,800 60,200 97,200 96,100 23,000 50,500 26,500 $ 41,000