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 206,000 206,060 Machine hours 366, 006 456, 006 Number of setups 006'E 4, 200 Unit variable cost pool $1, 647, 090 $2, 052, 060 Batch-level cost pool $1, 092, 000 $1, 176,060 Assume that both cost pools for Institute are combined into a single pool, and labor hours is the driver. The total flexible budget for the actual level of labor hours and the total variance for the combined pool are: Flexible B Variance A. $1, 647,000 $405, 060 U B . $2, 739,000 $489, 000 U C. $2, 823, 060 $405, Bee U D . $3, 144, 000 $ 84,000 U $3, 228, 000 Multiple Choice O Choice A O Choice B O Choice C O Choice D O Choice E