Institute Technologies is choosing new cost drivers for its accounting system. One driver is labor hours, the other is a combina
tion 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 
Labor hours 200,000 
Machine hours 360,000 
Number of setups 3,000 
Unit variable cost pool $1,600,000 
Batch-level cost pool $ 900,000 
Actual 
200,000 
450,000 
3,300 
$2,000,000 
$ 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 Cost Pool 
a) $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