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 ActualLabor 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 pool$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
CostPoolA.$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
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer: D
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