Based on Past Experience,Moss Company Has Developed the Following Budget

Multiple Choice

Based on past experience,Moss 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:

$$\begin{array} { | l | r | r | } \hline & \text { Plan } & \text { Actual } \\\hline \text { Sales orders } & 800 & 780 \\\hline \text { Shipments } & 800 & 820 \\\hline \text { Units shipped } & 8,000 & 9,000 \\\hline \text { Sales } & \$ 120,000 & \$ 144,000 \\\hline \text { Total pounds shipped } & 9,600 & 12,300 \\\hline\end{array}$$ 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: (CMA adapted)

A) $20,680.
B) $20,920.
C) $20,800.
D) $22,150.