A hotel's March housekeeping budget is presented as follows:

The budget was based on an estimated $4,000-$room rental for the month. During March, $3,000$ rooms were actually rented, with the

following costs incurred.

Variable costs

Fixed costs

When the hotel prepares the flexible housekeeping budget report for the month of March, what is the difference in total costs between

budget and actual? Is this difference favorable or unfavorable?

$$16,267$ U

$$14,650$ U

$$14,650$ F

$$1,400$ U

$$16,267F$

$$1,400$ F