At the end of January, Supreme Catering prepared the following budget for the upcoming month of February estimating that they would serve 3000 people:

Sales revenue per guest $20

Variable costs per guest $8

Total fixed costs $5000

During February, there were 2700 guests actually served. Actual costs incurred were $27 000 for variable costs and $6500 for fixed costs. Each guest was charged $20.

Supreme Caterings flexible budget variance for February would show a variance of:

A. $6900 F

B. $10 500 U

C. $10 500 F

D. $6900 U

PLEASE EXPLAIN WHY YOU CHOSE THIS ANSWER