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

Variable costs

Direct labor $$37,000$

Laundry service $10,000$

Supplies $6,000$

Total variable $$53,000$

Fixed costs

Supervision $$17,000$

Inspection costs $1,000$

Insurance expenses $2,000$

Depreciation $15,000$

Total fixed $$35,000$

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

Direct labor $$38,700$

Laundry service $8,200$

Supplies $5,100$

Total variable $$52,000$

Fixed costs

Supervision $$19,300$

Inspection costs $1,200$

Insurance expenses $2,200$

Depreciation $14,700$

Total fixed $$37,400$

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?

Group of answer choices

$$14,650$ F

$$1,400$ F

$$16,267$ F

$$14,650$ U

$$16,267$ U

$$1,400$ U