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 poo l$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 CostPool

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