Sand Box Company Is Choosing New Cost Drivers for Its

question 90

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 both cost pools 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

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Multicellular, eukaryotic organisms in the kingdom Animalia, characterized by their ability to move, responsive behavior to environment, and consumption of organic material.

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