Recognizing favorable vs. unfavorable variances Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U).

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Budget Actual For U Variance Item Sales price Sales revenue Cost of goods sold Materials purchases at 10,000 pounds Materials usage Production volume Wages at 7,600 hours Labor usage Research and development expense Selling and administrative expenses $550 $560 $7 20,000 $690,000 $520,000 S470,000 $360,000 $260,000 $270,000 890 units 900 units $91,200 7,600 hours $90,800 8,000 hours $81,000 $75,000 $90,000 $71,000