Based on past experience, a company has developed the following budget formula for estimating its shipping expenses. The company's shipments average 18 lbs. per shipment: Shipping costs = $22,000 + ($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 $27,450. The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be:

a) 27,450

b) 33,900

c) 28,450

d) 32,550

Sales order Shipments Unit shipped Sales Total pounds shipped plan 860 860 8600 126,000 10,200 actual 840 880 9400 150,000 12,900