Compute variance for the following items and indicate whether each variance is favorable or unfavorable.

Item Budget Actual Variance F or U

Sales revenue $580,000 $600,000

Cost of goods sold 385,000 360,000

Material purchases at 5000 LB 275,000 280,000

Materials usage 180,000 178,000

Sales price 500 489

Production Volume 950 UNITS 900 UNITS

Wages at 4000 hours $ 60,000 $58,700

Labor usage at $16 per hour 96,000 97,000

Research and development expense 22,000 25,000

Selling and Administrative expenses 49,000 40,000