Louis Company Planned to Produce 12,000 Units

Multiple Choice

Louis Company planned to produce 12,000 units. This level of activities required 20 set- ups at a cost of $18,000 plus $500 per set- up. Actual sales were 10,000 units, requiring 15 set- ups and 12,000 machine hours. Actual set- up cost was $26,000. _ is the flexible budget amount for set- ups.

A) $7,500
B) $28,000
C) $25,500
D) $21,000