Mathematics, 03.10.2021 15:40 janetexcoelho
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:
Plan 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
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. $20,680
B. $20,920
C. $20,800
D. $22,150
Answers: 3
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Based on past experience, a company has developed the following budget formula for estimating its sh...
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