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 $212,000212,000$

Machine hours $372,000462,000$

Number of setups $3,6003,900$

Unit variable cost pool $ $1,674,000$ $ $2,079,000$

Batch$-$level cost pool $ $1,080,000$ $ $1,170,000$

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$.$ $ $1,674,000$ $ $1,080,000$

B$.$ $ $1,674,000$ $ $1,170,000$

C$.$ $ $2,079,000$ $ $1,080,000$

D$.$ $ $2,079,000$ $ $1,170,000$

E$.$ $ $2,754,000$ $ $0$

Multiple Choice

Choice A

Choice B

Choice C

Choice D

Choice E