If actual income is $48,500 and budgeted income is $56,000 and actual utilities is $5,000 and budgeted utilities is $5,500, the variances are respectively: Note: F - Favourable, U - Unfavourable (adverse).

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The income variance is unfavorable because the actual income ($48,500) is less than the budgeted income ($56,000), resulting in a $7,500 unfavorable variance. The utilities variance is favorable because the actual utilities cost ($5,000) is less than the budgeted utilities cost ($5,500), resulting in a $500 favorable variance.

If Actual Income Is $48,500 and Budgeted Income Is $56,000