Classifying variances as favorable or unfavorable

Required

Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example.

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Item to Classify Sales volume Sales price Materials cost Materials usage Labor cost Labor usage Standard Actual Type of Variance 38,000 units $6.90 per unit $2.10 per pound 102,400 pounds $8.25 per hour 56,980 hours Unfavorable 36,750 units S6.78 per unit $2.30 per pound 103,700 pounds S8.80 per hour 55,790 hours $249,000 $244,000 Fixed cost per unit (volume) $3.22 per unit $2.51 per unit