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 (.e., zero variance).) Actual Variance Effect $ 652 $ 581,000 $ 386,500 $ 276,000 Item Budget Sales price 526 Sales revenue $ 602,000 Cost of goods sold S 361,000 Material purchases at 5,000 pounds $ 281,500 Materials usage $ 179,000 Production volume 905 units Wages at 4,000 hours $ 58,800 Labor usage at $16 per hour $ 97,200 Research and development $ 26,500 expense Selling and administrative expenses $ 41,000 $ 181,500 960 units units S 60,200 $ s 96,100 S 23,000 $ 50,500 Planning Buaget For the Month Ended May 31 Budgeted diving-hours (9) 200 $ 82,000 Revenue ($410.009) Expenses : Wages and salaries ($11,700 + $122.009) Supplies ($6.009) Equipment rental ($2,000 + $26.000) Insurance ($4,100) Miscellaneous ($530 + $1.449) Total expense Net operating income 36,100 1,200 7,200 4,100 818 49,418 $ 32,582 During May, the company's actual activity was 190 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the ner Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous 0 Total expense Net operating income A 0