Sand Box Company Is Choosing New Cost Drivers for Its

Multiple Choice

Sand Box 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 number of setups for a pool of batch-level costs. Data for the past year follow. $\begin{array}{lrr}&\text { Budget } &\text { Actual }\\\text { Labor hours } & 200,000 & 200,000 \\\text { Machine hours } & 360,000 & 450,000 \\\text { Number of setups } & 3,000 & 3,300 \\\text { Unit variable cost pool } & \$ 1,600,000 & \$ 2,000,000 \\\text { Batch-level cost pool } & \$ 900,000 & \$ 990,000\end{array}$ Assume that the two separate pools are used. The flexible budget dollar amounts for the actual level of machine hours and actual number of setups are:

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