Exercise 8-3A (Alg) Determining amount and type (favorable vs. unfavorable) of variance LO 8-2 Required Compute variances for the following items and Indicate whether each variance is favorable (F) or unfavorable (U): Note: Select "None" If there is no effect (l.e., zero variance). Item Budget Actual Varianco Effect Sales price $ 662 $ 531 Sales revenue $ 586,000 $ 612,000 Cost of goods sold $ 394,000 $ 366,000 Material purchases at 5,000 pounds $ 281,000 $ 289,000 Materials usage $ 189,000 $ 184,000 Production volume 1,010 units 930 units units Wages at 4,000 hours $ 61,200 $ 59,300 Labor usage at $16 per hour $ 96,600 $ 98,200 Research and development expense $ 28,000 $ 34,000 Selling and administrative expenses $ 58,000 $ 46,000