Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U). Item Budget Annual Variance F or U sales revenue $580,000 $600,000 cost of goods sold $385,000 $360,000 material purchases @ 5,000 pounds $275,000 $280,000 sales price $500 $489 production volume 950 units 900 units wages @ 4,000 hours $60,000 $58,700 labor usage @ $16 per hr $96,000 $97,000 research & development expense $22,000 $25,000 selling & administrative expenses $49,000 $40,000