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	527	654	?	F
Sales Revenue	604,000	582,000	?	U
Costs of good sold	362,000	388,000	?	U
Material Purchases at 5000 pounds	283,000	277,000	?	F
Materials usage	180,000	183,000	?	U
Production Volume	910 units	970 units	?	F
Wages at 4,000 hours	59,900	60,400	?	U
Labor Usage at $16 per hour	97,400	96,200	?	F
Research and Development expense	28,000	24,000	?	F
Selling and administrative expense	42,000	52,000	?	F