Based on past experience, Moss Company has developed the following budget formula for estimating its shipping expenses:

Shipping costs = $18,500 + ($0.50 lbs. shipped). The company's shipments average 14 lbs. per shipment.

The planned activity and actual activity regarding orders and shipments for the current month are given in the following schedule:

	Plan			Actual
Sales orders		850			830
Shipments		850			870
Units shipped		8,500			9,500
Sales	$	125,000		$	149,000
Total pounds shipped		10,100			12,800

The actual shipping costs for the month amounted to $23,500. The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be: (CMA adapted)

• $23,250.

• $28,550.

• $23,550.

• $24,900.