Required

Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).)

Item	Budget		Actual		Variance		Effect
Sales price	$656		$528
Sales revenue	$583,000		$606,000
Cost of goods sold	$389,500		$363,000
Material purchases at 5,000 pounds	$278,000		$284,500
Materials usage	$184,500		$181,000
Production volume	980	units	915	units		units
Wages at 4,000 hours	$60,600		$59,000
Labor usage at $16 per hour	$96,300		$97,600
Research and development expense	$25,000		$29,500
Selling and administrative expenses	$53,500		$43,000