Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours; the other is a combination of machine hours for unit variable costs and number of setups for a pool of batch-level costs. Data for the past year follow. Budget Actual Labor hours 200,000 200,000 Machine hours 360,000 450,000 Number of setups 3,000 3,300 Unit variable cost pool $1,600,000 $2,000,000 Batch-level cost pool $900,000 $990,000 Assume that the two separate pools are used for Institute. The flexible budget dollar amounts for the actual level of machine hours and actual number of setups are: Unit Variable Cost Pool Batch-Level Cost Pool A. $ 1,600,000 $ 900,000

B. $ 1,600,000 $ 990,000

C. $ 2,000,000 $ 900,000

D. $ 2,000,000 $ 990,000

E. $ 2,500,000 $ 0