Appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation,
Shipping costs = 22000+(0.50*lbs.shipped)
= 22000+(0.5*13500)
= $28,750
Correct Option is (B) is $28,750
Based on past experience, Moss Company has developed the following budget formula for estimating its shipping...
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...