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		215,000				215,000
Machine hours		375,000				465,000
Number of setups		3,300				3,600
Unit variable cost pool	$	1,687,500			$	2,092,500
Batch-level cost pool	$	924,000			$	1,008,000

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.		$	1,687,500					$	924,000
B.		$	1,687,500					$	1,008,000
C.		$	2,092,500					$	924,000
D.		$	2,092,500					$	1,008,000
E.		$	2,611,500					$	0

Multiple Choice