Business, 17.08.2019 21:10 alexandriasmith727

Based on past experience, a company has developed the following budget formula for estimating its shipping expenses. the company's shipments average 2 lbs. per shipment: shipping costs = $6,000 + ($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 700 682 shipments 700 722 units shipped 7,000 7,820 sales $ 110,000 $ 134,000 total pounds shipped 8,600 11,300 the actual shipping costs for the month amounted to $10,650. the appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be: $14,950. $10,650. $16,300. $11,650.

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