Applet systems is a start-up company that makes connectors


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.

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