Answer:
The variance of $3000 is adverse variance.
Explanation:
The reason is that increase in cost is always an adverse sign for the business. Similarly increase in revenue is always a positive sign for the business. So in this case, the actual cost of selling has been increased from the flexed result by $3000 (Actual less flexed budget) which means that the cost has been increased and this increased cost from a certain level (flexed budget level) is adverse cost for the company.
