SanBox Company 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 mumber 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 200,000 200,000 450,000 3,300 3,000 $1,600,000 $900,000 $2,000 55. Assume that both cost pools 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 Budges Variance $400,000U A. $1,600,000 B. $2,500,000 $490,000U D. 2,900,000 E. $2,990,000 S0 $90,000U Answer: B LO: 7 Type: A 56. Assume that the two separate pools are used. The flexible budget amounts for the actual level of machine hours and actual number of setups are: Unit Variable Batch-Level Cost Pool $900,000 $990,000 $900,000 D. $2,000,000 $990,000 Cost Pool A. $1,600,000 B. $1,600,000 C. $2,000,000 E. $2,500,000 S0 9 8 5 6 8