Required

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	$660	$530
Sales Revenue	$585,000	$610,000
Cost of goods sold	$392,500	$365,000
Material purchase at 5,000 pounds	$280,000	$287,500
Materials usage	$187,500	$183,000
product volume	1,000 units	925 units
Wages at 4,000 hours	$61,000	$59,200
labor usage at $16 per hour	$96,500	$98,000
Research and development expenses	$27,000	$32,500
Selling and administrative expenses	$56,500	$45,000