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).) Variance Effect Item Budget Sales price $ 530 Sales revenue $ 610,000 Cost of goods sold $ 365,000 Material purchases at 5,000 pounds $ 287,500 Materials usage $ 183,000 Production volume 925 units Wages at 4,000 hours $ 59,200 Labor usage at $16 per hour $ 98,000 Research and development expense | $ 32,500 Selling and administrative expenses | $ 45,000 Actual $ 660 $ 585,000 $ 392,500 $ 280,000 $ 187,500 1,000 units $ 61,000 $ 96,500 $ 27,000 $ 56,500