Exercise 15-5A (Static) 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).) Item Sales price $ Budget 400 $ Actual 390 Variance Effect Sales revenue $ 360,000 $ 390,000 Cost of goods sold $ 192,500 $ 180,000 Material purchases at 5,000 pounds $ 137,500 $ 140,000 Materials usage 90,000 lbs 89,000 lbs lbs Production volume 950 units 900 units units Wages at 4,000 hours $ 30,000 $ 29,350 Labor usage at $12 per hour $ 48,000 $ 48,500 Research and development expense $ 11,000 $ 12,500 Selling and administrative expenses $ 24,500 $ 20,000