Question - Applet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $105 for each connector and fixed costs of $7,000 per month. Applet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 74 connectors at a total cost of $27,000.
Calculate Applet's flexible budget variance for total costs.
A. $12,230 F.
B. $2,730 F.
C. $2,730 U.
D. $12,230 U.