Institute Technologies Is Choosing New Cost Drivers for Its Accounting

Multiple Choice

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. 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) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E