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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Sand Box Company Is Choosing New Cost Drivers for Its