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 KLM Company budgeted production and sales of 63,000 units of Xeron in June, but produced and sold only 60,000 units

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 KLM Company budgeted production and sales of 63,000 units of Xeron in June, but produced and sold only 60,000 units. Variable costs of $125,000 were incurred during this period. Variable manufacturing cost was budgeted at $2.25 per unit. What is the flexible budget variance for the variable manufacturing cost?

A) $16,750 F

B) $16,750 U

C) $10,000 F

D) $10,000 U

E) None of the above.