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 x 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

A. $20,920

B. $20,680

C. $22,150

D. $20,800
 

Planned Actual Sales orders 800 780 Shipments 800 820 Units shipped 8,000 9,000 Sales $120,000 $144,000 Total pounds shipped 9,600 12,300