Based on past experience,a company has developed the following budget formula for estimating its shipping expenses.The company's shipments average 12 lbs.per shipment: Shipping costs = $16,000 + ($0.50 × lbs.shipped).The planned activity and actual activity regarding orders and shipments for the current month are given in the following schedule: The actual shipping costs for the month amounted to $21,000.The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be: (CMA adapted)
A)$20,680.
B)$20,920.
C)$20,800.
D)$22,150.

Question

Based on past experience,a company has developed the following budget formula for estimating its shipping expenses.The company's shipments average 12 lbs.per shipment: Shipping costs = $16,000 + ($0.50 × lbs.shipped).The planned activity and actual activity regarding orders and shipments for the current month are given in the following schedule:  The actual shipping costs for the month amounted to $21,000.The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be: (CMA adapted)
A)$20,680. 
B)$20,920. 
C)$20,800. 
D)$22,150.

Quizplus · Accepted Answer

The Answer of Based on past experience,a company has developed the following budget formula for estimating its shipping expenses.The company's shipments average 12 lbs.per shipment: Shipping costs = $16,000 + ($0.50 × lbs.shipped).The planned activity and actual activity regarding orders and shipments for the current month are given in the following schedule:  The actual shipping costs for the month amounted to $21,000.The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be: (CMA adapted)
A)$20,680. 
B)$20,920. 
C)$20,800. 
D)$22,150.

Based on Past Experience,a Company Has Developed the Following Budget