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 209,000 209,000 Machine hours 369,000 459,000 Number of setups 3,900 4,200 Unit variable cost pool $ 1,660,500 $ 2,065,500 Batch-level cost pool $ 1,053,000 $ 1,134,000 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 Budget Variance A. $ 1,660,500 $ 405,000 U B. $ 2,713,500 $ 486,000 U C. $ 2,794,500 $ 405,000 U D. $ 3,118,500 $ 81,000 U E. $ 3,199,500 $ 0

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. Labor hours Machine hours Number of setups Unit variable cost pool Batch-level cost pool Budget 209,000 369,000 3,900 $1,660,500 $1,053,000 Actual 209,000 459,000 4,200 $2,065,500 $1,134,000 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: A. B. C. D. E. Flexible Budget $1,660,500 $2,713,500 $2,794,500 $3,118,500 $3,199,500 Variance $405,000 U $486,000 u $405,000 U $ 81,000 U $ 0